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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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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th Edition
1260772381, 978-1260772388
