Question: In 2 0 1 9 , you built a pavilion to rent for special events $ 1 5 , 0 0 0 and started operations

In 2019, you built a pavilion to rent for special events $15,000 and started operations in 2020. Each year you operate, you incur $100 in expenses. In 2020, you made no money because of the pandemic. But in 2021 you earned $1,000, and grew your business by an $1000 each year after (e.g.$2000 in 2022, $3000 in 2023, etc.). At the end of 2024, you sold the pavilion for $15,796.68. Draw a cash flow diagram of this project. Calculate the NPV of this investment given discount rates of 10%,12%, and 18%. What is the IRR of this investment?

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