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(Chapter 7) - Consider the following project. You own a mining company. A land owner has approached you about a deal. The land owner has recently discovered that there is an abundance of diamonds buried on the property. The land owner knows nothing of mining, and has no desire to learn. The land owner would like you and your company to mine the diamonds. The landowner will retain ownership of the diamonds, your company will simply get them out of the earth. In exchange, the landowner will pay you an upfront fee of $1,000,000 today, and then a bonus of $3,000,000 in four years from now (when the mine is depleted). You will have to cover your own operating costs during the project. Your operating costs will be $600,000, $700,000, $800,000, and $1,000,000 in years one, two, three, and four respectively. What is the IRR of this project? Please explain