Question

3. What is the IRR of a project which requires an initial cash outlay of $12,345, and is expected to generate after-tax cash flows of $3,600 a year for three years and then $4,200 a year for two more? years?

a. 14.00%

b. 15.50%

c. 16.20%

d. 17.80%

Answer #1

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$
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the initial outlay of $300,000 w-hich includes both an after-tax
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