"Champion Chemical Corporation is planning to expand one of its propylene -manufacturing facilities. At n = 0, a piece of property costing $1.5 million must be purchased to build a plant. The building, which needs to be expanded during the first year, costs $3 million. At the end of the first year, the company needs to spend about $4 million on equipment and other start-up costs. Once the building becomes operational, it will generate revenue in the amount of $3 million during the first operating year. This will increase at the annual rate of 10% over the previous year's revenue for the next 9 years. After 10 years, the sales revenue will stay constant for another 3 years before the operation is phased out. (It will have a project life of 13 years after construction). The expected salvage value of the land at the end of the project's life would be about $2 million, the building about $1.4 million, and the equipment about $500,000. The annual operating and maintenance costs are estimated to be approximately 45% of the sales revenue each year. What is the IRR for this investment? If the company's MARR is 15% determine whether the investment is a good one. (Assume that all figures represent the effect of the income tax.)''