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Kendall Corporation is considering a project that requires an initial investment of $577,500 and has a useful life of 11 years. The annual net cash
Kendall Corporation is considering a project that requires an initial investment of $577,500 and has a useful life of 11 years. The annual net cash receipts will be $190,000. The salvage value of the assets used in the project will be $70,000. The company's tax rate is 25%. 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 19%. Provide the variables you entered into Excel and your final calculation of net present value after-tax. (If a variable i not used in the calculation, input a zero (0). Omit the "S" and "%" signs in your response. Round answers to the nearest dollar and use a minus sign () for negative numbers.) Excel input: Rate er 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 "S" and "%" signs in your response. Round answers to the nearest dollar / whole number and use a minus sign (-) for negative numbers.)
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