Question: Bill plans to open a do - it - yourself dog bathing center in a storefront . The bathing equipment will cost $ 195,000 .

Bill plans to open a do - it - yourself dog bathing center in a storefront . The bathing equipment will cost $ 195,000 . Bill expects the after - tax cash inflows to be 42,000 annually for seven years , after which he plans to scrap the equipment and retire to the beaches of Jamaica . Assume the required return is 13.5 % What is the project's IRR ? Should it be accepted

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