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What is the IRR of a project with the following characteristics? Initial investment is $2,400,000 Initial investment is depreciated to $0 book value via straight-line
What is the IRR of a project with the following characteristics?
- Initial investment is $2,400,000
- Initial investment is depreciated to $0 book value via straight-line over its 10 year life
- Project is expected to generate incremental sales of 2,000,000 per year, and incremental expenses of 1,500,000 per year
- There are no NWC or salvage cash flows
- The firm faces a 28% tax rate
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
