Question: PayPal is considering an update to its app. The update would cost 1 2 million dollars today, and 5 million dollars 1 year from now.

PayPal is considering an update to its app. The update would cost 12 million dollars today, and 5 million dollars 1 year from now. In years 2-6, the update would increase PayPal's cash flows by 6 million dollars. What is the IRR of this project?

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