12.7

Sont Inc. was considering an investment in the following project Required initial investment Net annual after-tax cash inflow Annual depreciation expense (($998,e00 - $168,e00)/15 years) Estimated salvage value Life of the project in years $990,00e $167,000 $ 54,800 $168,e0e 15 he internal rate of return (IRR) is (Note: to solve this problem students will need access either to ppendix C, Table 2 (Chapter 12) or to Excel): Multiple Cholce Less than 10%