Cirice Corporation is considering opening a branch in another state. The operating cash flow will be $150,400 a year. The projec will require new equipment costing $592,000 that would be depreciated on a straight-line basis to zero over the 6-year life of the project. The equipment will have a market value of $177,000 at the end of the project. The project requires an initial investment of $41,000 in net working capital, which will be recovered at the end of the project. The tax rate is 21 percent. What is the project's IRR?

Cirice Corporation is considering opening a branch in another state. The operating cash flow will be $150,400 a year. The projec will require new equipment costing $592,000 that would be depreciated on a straight-line basis to zero over the 6-year life of the project. The equipment will have a market value of $177,000 at the end of the project. The project requires an initial investment of $41,000 in net working capital, which will be recovered at the end of the project. The tax rate is 21 percent. What is the project's IRR?

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Description: What is the project irr? Cirice Corporation is considering opening a branch in another state. The operating cash flow will be $150,400 a year. The projectwill require new equipment costing $592,000 that would be depreciated on a straight-line basis t

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 2PB: Markoff Products is considering two competing projects, but only one will be selected. Project A...

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