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QUESTION 25 Industrial Services in mislyzing a proposed investment that would initially require 538,000 of new equipment. This equipment would be depreciated on a straight

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QUESTION 25 Industrial Services in mislyzing a proposed investment that would initially require 538,000 of new equipment. This equipment would be depreciated on a straight line basis to a zero balance over the 4-year life of the project. The estimated salvage value is $187.000. The project requires $39.000 initially for networking capital all of which will be recouped at the end of the project. The projected operating cash flow (OCF) is $194,900 a year. What is the internal rate of return on this project if the relevant tax rate is 34 percent? CA. 15.54 percent 9.20.47 percent OC 18.01 percent D.15 92 percent O E 18.67 percent

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