Industrial service is analyzing proposed investment

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An industrial service is analyzing a proposed investment that would initially require $538000 of new equipment. This equipment would be depreciated on straight line basis to a zero balance over the 4 year life of the project. The estimated salvage value is $187000. The project requires $39000 initially for net working capital, all of which will be recouped at the end of the project. Projected OCF is 194,900 a year. What is the IRR of the project if tax rate is 34% what is the formula for this?

Reference no: EM131085593

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