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A capital investment project has total installed cost of $50 million and a terminal value of $16 million at the end of its 30-year life.

A capital investment project has total installed cost of $50 million and a terminal value of $16 million at the end of its 30-year life. The project is expected to generate $5 million in net cash flows after tax each year. The firms marginal tax rate is 40 percent, and its cost of capital is 16 percent. Calculate the internal rate of return of this project.

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