Industrial Services is analyzing a proposed investment that would initially require $538,000 of new equipment. This equipment would be depreciated on a straight-line basis to a zero balance over the four-year life of the project. The estimated salvage value is $187,000. The project requires $39,000 initially for net working capital, all of which will be recouped at the end of the project. The projected operating cash flow is $194,900 a year. 

What is the internal rate of return on this project if the relevant tax rate is 34 percent?

Answer rating: 100% (QA)

Introduction The internal rate of return IRR is a crucial financial metric used to evaluate the profitability of an investment It represents the disco... View the full answer