Question: Could someone explain this exercise? How did they get the IRR? 8. You are considering a project that requires an initial investment of $2,000,000. If

Could someone explain this exercise? How did they get the IRR?

8. You are considering a project that requires an initial investment of $2,000,000. If the project will produce an annual cash flow of $400,000 for 7 years, what is this project's IRR? 2,000,000IRR=IRR400,000[1(1+IRR)71]=9.20%

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