Problem:
Acme Fish Company, a subsidiary of BGS Co. Inc., recently published their year end balance sheet. The balance sheet showed: Total Assets = $12,500,000; Owners Equity of $1,500,000. What must be their total liabilities?
The capital budgeting director of SP Corporation is evaluating a project which 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 required rate of return is 14% and its tax rate is 40%, what is the project's IRR?