Question: 14 Consider the following nancial data for a project: tnitial investment $15,000 Project life 3 years Salvage value Annual revenue $9,229 Annual expenses [including income

14 Consider the following nancial data for a project: tnitial investment

$15,000 Project life 3 years Salvage value Annual revenue $9,229 Annual expenses

14 Consider the following nancial data for a project: tnitial investment $15,000 Project life 3 years Salvage value Annual revenue $9,229 Annual expenses [including income taxes] 3,000 (a) What is the IRR (i*) for this project? (b) If the annual expenses increase at a 7% rate over the previous year's expenses, but the annual revenue is unchanged, what is the new IRR (i*)

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