### Compute the internal rate of return and net present value

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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 year for five years. The firm has a marginal income-tax rate of 40%. The firm's cost of capital is 12%. Compute the internal rate of return and the net present value. Should the firm accept or reject the project

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