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A project requires an initial investment of $850,000 depreciated straight-line to $0 in 10 years. The investment is expected to generate annual sales of $571,500
A project requires an initial investment of $850,000 depreciated straight-line to $0 in 10 years. The investment is expected to generate annual sales of $571,500 with annual costs of $250,000 for 10 years. Assume a tax rate of 30% and the NPV of $250,000. What is a discount rate of the project?
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