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You just finished analyzing a capital investment that will produce equal annual cash flows of $25 million of over its 5-year life. The resulting NPV

You just finished analyzing a capital investment that will produce equal annual cash flows of $25 million of over its 5-year life. The resulting NPV is $8 million and the IRR is 15.13%. You assumed a $30 million salvage value, $20 million above its adjusted tax basis, and a 35% marginal tax rate. What discount rate did you use to value this investment?

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