Guinness Ghana invested in a new automated plant to boost its production of Malta Guinness. The cash flow from the new automated plant is as follows. 

Starting from year 9, net revenue from the plant is US$2 million and will continue for the same amount for 20 years. 

The cost of the project is US$1 million per year starting from year 1 and ends in year 8, when the new plant is completed. 

Further, it is assumed that maintenance cost of the plant is zero.

  Calculate the maximum rate of return for the project (IRR)

Answer rating: 100% (QA)

To calculate the maximum rate of return for the project IRR we need to determine the discount rate a... View the full answer