(IRR of an uneven cash flow stream) Microwave Oven Programming, Inc. is considering the construction of a new plant. The plant will have an initial cash outlay of $7 million (= - $7 million), and will produce cash flows of $3 million at the end of year 1, $4 million at the end of year 2, and $2 million at the end of years 3 through 5. What is the internal rate of return on this new plant? The IRR of the project is %. (Round to two decimal places.)

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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(IRR of an uneven cash flow stream) Microwave Oven Programming, Inc. is considering the construction of a new plant. The plant will
have an initial cash outlay of $7 million (= - $7 million), and will produce cash flows of $3 million at the end of year 1, $4 million at the end
of year 2, and $2 million at the end of years 3 through 5. What is the internal rate of return on this new plant?
The IRR of the project is %. (Round to two decimal places.)
C
Transcribed Image Text:(IRR of an uneven cash flow stream) Microwave Oven Programming, Inc. is considering the construction of a new plant. The plant will have an initial cash outlay of $7 million (= - $7 million), and will produce cash flows of $3 million at the end of year 1, $4 million at the end of year 2, and $2 million at the end of years 3 through 5. What is the internal rate of return on this new plant? The IRR of the project is %. (Round to two decimal places.) C
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