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With a purchase price of $450,000, a small warehouse provides for an initial before- tax cash flow of $25,000, which grows by 4 percent per
With a purchase price of $450,000, a small warehouse provides for an initial before- tax cash flow of $25,000, which grows by 4 percent per year. If the before-tax equity reversion after four years equals $80,000, and an initial equity investment of $95,000 is required, what is the IRR on the project? Excel a) 20.7% b) 21.5% c) 22.1% d) 23.5% Oe) 25.6% Of) 24.9%
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