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A company invests 400,000 in a 4-year capital project. The project is expected to incur...

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A company invests 400,000 in a 4-year capital project. The project is expected to incur throughout the first year expenditure costs payable continuously at an annual rate of 2,500. The net income payments from the project will be received half-way through each year, as follows: . Year 1: Year 2: Year 3: Year 4: 24,500 28,000 32,500 35,000 . Finally, it is assumed that the project can be sold on to another investor for 450,000 at the end of year 4. Calculate the annual internal rate of return resulting from this investment to the nearest 0.1%

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