Given the following information and assuming straight-line depreciation to zero, what is the IRR of this project? Initial investment = $400,000; life = four years; cost savings = $125,000 per year;
Salvage value = $20,000 in year 5; tax rate = 34%; discount rate = 12%.

Question

Quizplus · Accepted Answer

The Answer of Given the following information and assuming straight-line depreciation to zero, what is the IRR of this project? Initial investment = $400,000; life = four years; cost savings = $125,000 per year;
Salvage value = $20,000 in year 5; tax rate = 34%; discount rate = 12%.

Given the Following Information and Assuming Straight-Line Depreciation to Zero