A project involves an investment in a fixed asset of 5,000 and an annual payment surplus of
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Question:
A project involves an investment in a fixed asset of 5,000 and an annual payment surplus of 2,000 for three years. (The first payment comes one year after the investment.) The investment is depreciated for tax purposes according to the balance method with a depreciation rate of 20%. The tax rate is 22% (All amounts in NOK 1,000).
Calculate the project's internal rate of return after tax. Enter the answers in percent with two decimal places.
the question has 4 answers and it is one of these
4.34%
5.78%
5.23%
6.15%
Related Book For
Contemporary Business Mathematics with Canadian Applications
ISBN: 978-0133052312
10th edition
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
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