Problem:
Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million. It expects the project to generate cash flows of $13,000,000, $23,000,000, and 29,000,000 over the next three years. The cost of capital is 20 percent.
Required:
Question: What is the internal rate of return that Turnbull can earn on this project?
Note: Show supporting computations in good form.