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Ken and several of his buddies wanted to start a small-scale airline company that follows Southwest's low-fare and low-cost model.

Ken and several of his buddies wanted to start a small-scale airline company that follows Southwest’s low-fare and low-cost model. To start the operation of this company requires $4,000,000 upfront investment for the purchase of property, airplanes and other facilities. Ken and his buddies expect that this airplane companies would be able to bring in $510,000 in revenue from the first year, $780,000 in revenue from the second year, and $510,000 in revenue from the third year.

[Part A]: What is the internal rate of return (IRR) for this project?

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