What is the irr of the replacement


Question:

The replacement of an existing non-depreciable assets (market value = $15,000) requires the purchase of new asset which costs $30,000 and is expected to generate before-tax cash savings of $5,569.23 per year for the next 5 years.

Assuming a tax rate of 48%, what is the IRR of the replacement?

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Finance Basics: What is the irr of the replacement
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