Question: A project has $4X start-up costs, generates $4X, $2X, and $2X income in the first, second, and third years of operation respectively, then has a wind-up cost of $X in the fourth year. The external interest rate, which is also the firm's MARR, is i%.
Find the IRR and the approximate ERR (in term of i) of the project, and say whether it should be carried out.