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The Barb Akew is a famous local barbeque restaurant. It is examining whether it should buy a new kitchen. Its purchase price is $ 5
The Barb Akew is a famous local barbeque restaurant. It is examining whether it
should buy a new kitchen. Its purchase price is $ and will be depreciated
straight line to a value of $ over its year useful life. At year the kitchen can
be sold for $ The restaurant estimates that every year, it will save the following
cash flows with the new kitchen:
Year:
CF: $ $ $ $ $
At the start of the project, The Barb Akew will also reduce its working capital by
$ If the company's tax rate is what is the project's IRR?
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