Cash flows for the first three years in operation

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Upon seeing such a high IRR, the mayor of Detroit seeks a second opinion and hires Dan as a consultant. Dan is an aquarium expert and believes that Detroit's aquarium will only generate $1 million in cash flows for the first three years in operation, but will grow in popularity over time and generate $9 million in cash flows for the following 5 years. If the initial investment remains $20 million, what is the project's IRR if Dan's forecast is correct?

Reference no: EM131317117

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