Question: The Spoon Restaurant is considering a project with an initial cost of $825,000. Then the project will not produce any cash flows for the first

The Spoon Restaurant is considering a project with an initial cost of $825,000. Then the project will not produce any cash flows for the first two years. Starting in year three, the project will produce cash inflows of $721,000 a year for three years. This project is risky, so the firm has assigned it a discount rate of 20 percent. However, the Spoon Restaurant wants to know the discount rate where it would be indifferent between accepting the project and rejecting it. Report that discount rate % to 2 decimal places.

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