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A project will produce an operating cash flow of $18,000 a year for 8 years. The initial fixed asset investment in the project will be
A project will produce an operating cash flow of $18,000 a year for 8 years. The initial fixed asset investment in the project will be $75,000. The net aftertax salvage value is estimated at $11,250 and will be received during the last year of the project's life. What is the IRR?
A. 18.57%
B. 16.71%
C. 17.08%
D. 18.94%
E. 17.83%
A project will produce an operating cash flow of $18,000 a year for 8 years. The initial fixed asset investment in the project will be $75,000. The net aftertax salvage value is estimated at $11,250 and will be received during the last year of the project's life. What is the IRR?
A. 18.57%
B. 16.71%
C. 17.08%
D. 18.94%
E. 17.83%
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