Laura is looking into purchasing a building for her new business. The building would cost $336,000 and
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Question:
Laura is looking into purchasing a building for her new business. The building would cost $336,000 and have a life of 20 years. The building would have a salvage value of $46,000. She is estimating that the net operating cash flows will be $28,000. Determine the internal rate of return (IRR) and simple payback period of the building if the business will be subject to a 21% tax rate. (Round IRR answer to 2 decimal places, 52.75%)
1. Internal Rate of Return: _____%
2. Simple payback:
Related Book For
Intermediate Accounting
ISBN: 978-0324312140
16th Edition
Authors: James D. Stice, Earl K. Stice, Fred Skousen
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