Question: Capitol Reef Co. is considering a project that will produce cash inflows of $500,000 a year for five years followed by $200,000 a year for

Capitol Reef Co. is considering a project that will produce cash inflows of $500,000 a year for five years followed by $200,000 a year for the following two years. What is the internal rate of return if the initial cost of the project is $2 million?

a. 13.27 percent

b. 11.90 percent

c. 17.48 percent

d. 15.81 percent

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