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The following information are provided concerning a future investment. The investment is $142 950, the net annual cash inflow is $37 500, the estimated life

The following information are provided concerning a future investment.

The investment is $142 950, the net annual cash inflow is $37 500, the estimated life of the equipment is 7 years.

Compute the following assuming a tax rate of 30%. (Straight line depreciation)

If the standard deviation of the net annual cash inflows is plus or minus 20%. Compute the IRR under both scenarios.

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