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10. Given the following information and assuming straight-line depreciation to zero, what is the IRR of this project? Initial investment = $6,000; life = 4
10. Given the following information and assuming straight-line depreciation to zero, what is the IRR of this project? Initial investment = $6,000; life = 4 years; cost savings = $2,500 per year; salvage value = $2,000 in year 4; tax rate = 35%; discount rate = 10%.
a. 24.87% b. 21.56% c. 16.13% d. 13.51% e. None of the above
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