Question

. You are considering purchasing 6,000 in equipment for a equipment for a project that will...

. You are considering purchasing 6,000 in equipment for a equipment for a project that will last 4 years. After the project, the equipment can be sold 2,000. The project will result in cost savings of 2,500 each year. Assuming straight-line depreciation to zero, and knowing the firm is in the 35% tax bracket and uses a discount rate of 10% on project of this risk, what is the IRR of this project?

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