Question: Jefferson & Sons is evaluating a project that will increase operating cash flow (OCF) by $45,000 per year over the life of the project. The

Jefferson & Sons is evaluating a project that will increase operating cash flow (OCF) by $45,000 per year over the life of the project. The project will initially require $110,000 in fixed assets that will be depreciated straight-line to a zero book-value over the 4-year life of the project. The applicable tax rate is 32 percent. What is the IRR of the project?

Group of answer choices

IRR 0.0%

0.0% < IRR 10.0%

10.0% < IRR 20.0%

20.0% < IRR

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