Industrial 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 four-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?

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The Answer of Industrial 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 four-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?

Industrial Services Is Analyzing a Proposed Investment That Would Initially