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Question
Chester National Bank is considering adding a new branch bank. It knows that it will cost $2.5 million to build the branch and it believes that it will generate $214,526 per year for the next 25 years. Chester National Bank requires a return of 10% on all new projects it undertakes. What is this project's expected rate of return or internal rate of return? (Round to the nearest whole percent)
A. 0%
B. 7%
C. 12%
D. 2%
E. 25%
Answer
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