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Green Hill Ltd has made an initial investment of R500 000 in a new project. Due ...

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Green Hill Ltd has made an initial investment of R500 000 in a new project. Due to unfortunate miscalculations, an additional R100 000 had to be invested to successfully start up the project. The cost of capital is 12%. The investment is expected to generate the following cash inflows over the next five years:Year 1: R 80 000; Year 2: R 85 000; Year 3: R150 000; Year 4: R140 000; Year 5: R300 000.

The IRR is ...; therefore, the investment should ...

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