Question
A projects costs $21,000 will be depreciated straight-line to zero over its 3 year life, and will require a net working capital investment of $5,000
A projects costs $21,000 will be depreciated straight-line to zero over its 3 year life, and will require a net working capital investment of $5,000 up front. The project generates operating income $13,000. The asset will be sold for $2,000 at this end of the project. If the firm has a tax rate of 34% and a required return of 10% and an NPV of 6,004.
What is the IRR of the above project?
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, Ali R. Hassanlou, K. Suzanne Coombs
11th edition
134141083, 978-0134141084
