A proposed investment project requires an initial cash outflow-10970
A proposed investment project requires an initial cash outflow of $82,650 and has an economic life of three years, with no salvage value. It is expected to generate before tax cash flows of $45,000 for each of the three years. The firms tax rate is 30 percent. Which of the following is closest to the projects internal rate of return?
This multiple choice question (MCQ) is related to the book/course
vu fin622 Corporate Finance.
It can also be found in
vu fin622 Final Term - Quiz No.9.
A proposed investment project requires an initial cash outflow of $82,650 and has an economic life of three years, with no salvage value. It is expected to generate before tax cash flows of $45,000 for each of the three years. The firms tax rate is 30 percent. Which of the following is closest to the projects internal rate of return?
30 percent
7 percent
40 percent
12 percent
