A company is considering a project that requires an initial investment of $660,000 and has a useful life of 11 years. Expected cash receipts from the project will be $175,000 each year. The salvage value of the assets used in the project will be $75,000. The companys tax rate is 30%. For tax purposes, the entire initial investment (without any reduction for salvage value) will be depreciated over 11 years. The company uses a discount rate of 21%.

Provide the variables you entered into Excel and your final calculation of net present value after-tax. (If a variable is not used in the calculation, input a zero (0). Omit the "$" and "%" signs in your response. Round answers to the nearest dollar and use a minus sign ( - ) for negative numbers.)

Excel input:

Rate

%

Nper

PMT

$

PV

$

FV

$

Net present value

$

Required:

Compute the internal rate of return after-tax. Provide the variables you entered into Excel for the calculation. (If a variable is not used in the calculation, input a zero (0). Omit the "$" and "%" signs in your response. Round answers to the nearest dollar / whole number and use a minus sign (-) for negative numbers.)

Excel / calculator input:

Rate

%

Nper

PMT

$

PV

$

FV

$

Internal Rate of Return (IRR)

%