Your firm is considering a fast-food concession at the


Your firm is considering a fast-food concession at the World's Fair. The cash flow pattern is somewhat unusual because you must build the stands, operate them for 2 years, and then tear the stands down and restore the site to its original condition. You estimate the cash flows to be as follows:

Time Expected Cash Flows

0 ($800,000)

1 700,000

2 700,000

3 (400,000)

What is the approximate IRR of this venture?

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Finance Basics: Your firm is considering a fast-food concession at the
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