The table below offers EBIT for a potential capital investment for Fake Company Zeta. (This same project will be used for all of your FMC #3 work.) You should be able to determine a few things once you consider the following:

• The initial investment is $4,000.
• Depreciation is straight line over four years.
• The company's WACC is estimated at 15.0%.
• Company analysts estimate that a proper salvage value at the end of the project life of four years is about 30% of the initial investment.
• The company's tax rate is 30.0%.

YEAR 1 YEAR 2 YEAR 3 YEAR 4

EBIT $500 $650 $700 $1,100

What is this project'sinternal rate of return?

Enter your number as a regular dollar amount - without dollar signs or commas. Round to the nearest dollar. If it is a negative number, use a minus sign. There is a small error range of +/- 3.

For example, if you calculated $1,602.74, you will enter 1603. Or if you calculated $(942.29), you will enter -942.