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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)
Assume that $30 000 per year is achieved and that at the end of 5 years the equipment is sold for $61 375, compute the IRR.
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