Question: The introduction of a new product would require an initial investment of $120,000. The forecast profits in successive years of the anticipated four-year product life

The introduction of a new product would require an initial investment of $120,000. The forecast profits in successive years of the anticipated four-year product life are $25,000, $60,000, $50,000, and $35,000. Determine the IRR of the investment. Should the product be introduced if the firm’s cost of capital is 15%?

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