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With a purchase price of $350,000, a warehouse provides for an initial before-tax cash flow of $30,000, which grows by 6 percent per year. If
With a purchase price of $350,000, a warehouse provides for an initial before-tax cash flow of $30,000, which grows by 6 percent per year. If the before-tax equity reversion after four years equals $90,000, and an initial equity investment of $175,000 is required, what is the IRR on the project? If the required going-in levered rate of return on the project is 10 percent, should the project be undertaken?
kindly provide the calculation steps
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