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Question 14.5: Project K costs £10,000 and has expected net annual cash flo...

Project K costs £10,000 and has expected net annual cash flows of £3,000 at the end
of year 1, £4,000 at the end of year 2 and £4,300 at the end of year 3. By a process of
trial and error using interest rates of 5%, 6% and 7%, establish the internal rate of
return for the project.

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