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Lucius plans to open a custom paint and auto repair shop. The machinery, paints and equipment will cost $ 2 , 1 6 0 ,

Lucius plans to open a custom paint and auto repair shop. The machinery, paints and equipment will cost $

2, 160, 000 .

Lucius expects the after

-

tax cash inflows to be $

825, 000

annually for

14

years, after which he plans to scrap the equipment and retire to the beaches of Bermuda. Assume the required return is

10 % .

What is the project's IRR?

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