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Cirice Corp. is considering opening a branch in another state. The operating cash flow will be...

Cirice Corp. is considering opening a branch in another state. The operating cash flow will be $197400 a year. The project will require new equipment costing $5,000 that would be depreciated on a straight-line basis to zero over the 4-year life of the project. The equipment will have a market value of $143,000 at the end of the project. The project requires an initial investment of $32,500 in net working capital, which will be recovered at the end of the project. The tax rate is 35 percent. What is the project's IRR?

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