Compute internal rate of treturn and te net present value


A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows before depreciation and taxes are expected to be $5,000 per hear for five years. The firm has a marginal income-tax rate of 40%. The firms cost of capital is 12%. Compute the internal rate of treturn and the net present value. Should the firm accept or reject the project?

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Microeconomics: Compute internal rate of treturn and te net present value
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