What is the internal rate of return for this project

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A firm is considering investing in a project. The firm has a WACC of 11.75%. This project is expected to yield positive cash flows of $10,000 in years 1 and 2, followed by positive cash flows of $20,000 in years 3-5. The initial cost of the project is $40,000 today.

1. What is the Return on Investment (ROI) for this project?

2. What is the Internal Rate of Return (IRR) for this project?

Reference no: EM131937665

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