Question: Hello Here is my question: Cyclosport plans to develop a new ultra-light racing bike. The bike will take six years to develop and will cost

Hello

Here is my question:

Cyclosport plans to develop a new ultra-light racing bike. The bike will take six years to develop and will cost 200,000 per year. Once commercialised, the bike is expected to generate 306807 per year (cash flow) for 10 years. The cost of capital is assumed to be 10%.

Calculate the IRR for this project.

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