Question: Hydroponics is considering adding another greenhouse that would cost $ 9 5 , 0 0 0 and generate $ 2 0 , 0 0 0

Hydroponics is considering adding
another greenhouse that would cost $95,000 and generate $20,000 in
annual net cash flows over its 8 year expected life. The greenhouse
would be depreciated on a straight-line basis to zero and the
salvage value is also expected to be zero. If the firm has a
marginal tax rate of 40 percent, what is this project's internal
rate of return?

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