Answer: 1.89%
Explanation:
You can use Excel to find the IRR here:
Investment amount should be first as shown and should be in negative.
The cash flows will then follow each other by year.
Use the =IRR formula to select all the cells and the IRR will show.'
IRR here = 1.89%
The profits will peak and decline.
during this stage of the product development, the product is already widely accepted by the market.
Eventually, the newer and better product will start to appear and the previous one will started to lose popularity and decline in profits.
I believe it’s b.
Sorry if it’s wrong I’m not sure