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Suppose a company has an investment that requires an after-tax incremental cash outlay of $12,000 today. It estimates that the expected future after-tax cash flows
Suppose a company has an investment that requires an after-tax incremental cash outlay of $12,000 today. It estimates that the expected future after-tax cash flows associated with this investment are $5,000 in years 1 and 2, and $8,000 in year 3. What is the IRR?
49.26% | ||
Cannot be determined | ||
21.32% | ||
50% |
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