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The capital budgeting director of Sparrow Corporation is evaluating a project which costs $250,000, is expected...

The capital budgeting director of Sparrow Corporation is evaluating a project which costs $250,000, is expected to last for 10 years and produce after-tax cash flows, including depreciation, of $44,503 per year. If the firm's required rate of return is 14 percent and its tax rate is 40 percent, what is the project's IRR (answer in percent)?

8%

12%

14%

5%

18%

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Answer #1

IRR=12%

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