A firm is trying to determine if it should launch a product. The product has an expected life of three years. It will bring in cash flows of $10,000 in the first year, $11,000 in the second year, and $8,000 in the third year. The company estimates that it will invest $20,000 in product research and development costs. What is the estimated IRR for this product? Choose the IRR value that is closest to the amount invested.
a. 12%
b. 22%
c. 32%
d. 42%
b. 22%
Business
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Fill in the blank(s) with the appropriate word(s).
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