Problem
To virtually everyone's surprise, the new Washington Nationals baseball team earned a pretax profit of $20 million in 2005, compared to a $10 million loss when the team was the Montreal Expos in 2004 (Thomas Heath, "Nationals' Expected '05 Profit Is $20 Million," Washington Post, June 21, 2005, A1). Major League Baseball, which bought the franchise for $120 million in 2002, sold the team for $450 million in 2006 (washington.nationals.mlb.com, 2008). If the Nationals are expected to earn $20 million each year in the future, what is the internal rate of return on a $400 million investment for this club?
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.