What is the approximate after-tax IRR on a two-year project for which the first cost is $11000, savings are $4000 in the first year and $10000 in the second year, and taxes are at percent?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 15EA: Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years....
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What is the approximate after-tax
IRR on a two-year project for which
the first cost is $11000, savings are
$4000 in the first year and $10000
in the second year, and taxes are at
percent?
Transcribed Image Text:What is the approximate after-tax IRR on a two-year project for which the first cost is $11000, savings are $4000 in the first year and $10000 in the second year, and taxes are at percent?
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