Hydroponics is considering adding another greenhouse that would cost $95,000 and generate $20,000 in net cash flows per year over its expected 8-year life. The greenhouse would depreciate in a straight line 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 the internal rate of return for this project?

Answer rating: 100% (QA)

To calculate the internal rate of return IRR for the project we need to determine the discount rat... View the full answer