Problem
A project requires an initial investment of $12 000. It has a guaranteed return of $8000 at the end of year 1 and a return of $2000 each year at the end of years 2, 3 and 4. Estimate the IRR to the nearest percentage. Would you recommend that someone invests in this project if the prevailing market rate is 8% compounded annually?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.