Answer to Question #9187 in Finance for rim

Question #9187
ndustrial Services is analyzing a proposed investment that would initially require $538, 000 of new equipment. This equipment would be depreciated on a straight-line basis to a zero balance over the 4-year life of the project. The estimated salvage value is $187,000. The project requires $39,000 initially for net working capital, all of which will be recouped at the end of the project. The projected operating cash flow is $194,900 a year. What is the internal rate of return on this project if the relevant tax rate is 34 percent?
15.54 percent
15.92 percent
18.01 percent
18.67 percent
20.49 percent
Expert's answer
The answer to the question is available in the PDF file

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!


No comments. Be the first!

Leave a comment

Ask Your question

New on Blog