Question: A proposed project lasts 4 years, has an initial fixed asset investment of $1.8 million (dep. straight line to zero over 4 year project life)

A proposed project lasts 4 years, has an initial fixed asset investment of $1.8 million (dep. straight line to zero over 4 year project life) and an initial investment in net working capital of $250.000. The project will generate $817.250 in annual operating cash flow (OCF). The company will be able to sell the fixed asset for $300.000 at the end of the project. Tax rate is 35% and required return on the project is 15%. What is the Internal Rate of Return (IRR) for the project? 0 26.62% O 9.54% O 15.00% O 21.21% O 25.84%

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