Loose Leaf for Corporate Finance Format: Loose-leaf
Loose Leaf for Corporate Finance Format: Loose-leaf
12th Edition
ISBN: 9781260139716
Author: Ross
Publisher: Mcgraw Hill Publishers
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Chapter 6, Problem 7QAP
Summary Introduction

Adequate information:

Purchasing price = $575,000

Useful life of the project = 5 years

Salvage value = $60,000

Saving before tax = $176,000

Reduction in working capital = $80,000

Tax rate = 23% or 0.23

To compute: The internal rate of return (IRR) of the project.

Introduction: IRR is the discounting rate that produces zero NPV, that is, the present value of aggregate cash inflows is the same as the present value of aggregate cash outflows associated with a project.

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Chapter 6 Solutions

Loose Leaf for Corporate Finance Format: Loose-leaf

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