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What is the IRR of a project with the following characteristics? Initial investment is $2,000,000 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 $2,000,000
Initial investment is depreciated to $0 book value via straight-line over its 12 year life
Project is expected to generate incremental sales of 1,900,000 per year, and incremental expenses of 1,400,000 per year
There are no NWC or salvage cash flows
The firm faces a 28% tax rate
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Valuation Measuring And Managing The Value Of Companies
Authors: McKinsey & Company Inc., Tom Copeland, Tim Koller, Jack Murrin
3rd Edition
0471361909, 978-0471361909
