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Initial investment $ 300,000 Pretax salvage value $ 35,000 Cost savings per year $ 85,000 Working capital reduction $ 55,000 Tax rate 35% *Depreciation straight-line
| Initial investment | $ 300,000 | ||
| Pretax salvage value | $ 35,000 | ||
| Cost savings per year | $ 85,000 | ||
| Working capital reduction | $ 55,000 | ||
| Tax rate | 35% | ||
| *Depreciation straight-line | |||
| over life | 5 | ||
| What is the IRR of the project? | |||
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Financial Analysts Indispensable Pocket Guide
Authors: Ram Ramesh
1st Edition
0071361561, 978-0071361569
