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Capital budgeting director of sparrow corporation

Question:

The capital budgeting director of Sparrow Corporation is evaluating a project that costs $200,000, is expected to last for 10 years and produce after-tax cash flows, including depreciation, of $44,503 per year. If the firm's cost of capital is 14 percent and its tax rate is 40 percent, what is the project's IRR?

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## Q : Compute the effective annual rate

Compute the Effective Annual Rate (EAR) for each investment choice. (Assume that there are 365 days in the year). Please show in Excel.