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3. Bill plans to open a do-it-yourself dog bathing center in a storefront. The bathing equipment will cost $180,000. Bill expects the after-tax cash inflows
3. Bill plans to open a do-it-yourself dog bathing center in a storefront. The bathing equipment will cost $180,000. Bill expects the after-tax cash inflows to be $40,000 annually for six years, after which he plans to scrap the equipment and retire to the beaches of Jamaica. Assume the required return is 15.5%. What is the project's IRR? Should it be accepted
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