Question: Using the cash flow information in the previous two questions, what is the Internal Rate of Return (IRR)? Total cost (day 0): $3,250,000 Total cost

Using the cash flow information in the previous two questions, what is the Internal Rate of Return (IRR)? Total cost (day 0): $3,250,000 Total cost (year 1): $850,000 Annual cash flow for year 2: $0 Annual cash flows for years 3 to 6: $892,000 Annual cash flows for years 7 to 10: $1,250,000

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d. Describe any challenges in trying to communicate. If there were no challenges, explain why you think it was so easy.

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