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Kendall Corporation is considering a project that requires an initial investment of $900,000 and has a...

Kendall Corporation is considering a project that requires an initial investment of $900,000 and has a useful life of 12 years. The annual net cash receipts will be $175,000. The salvage value of the assets used in the project will be $50,000. The company’s tax rate is 35%. For tax purposes, the entire initial investment (without any reduction for salvage value) will be depreciated over 12 years. The company uses a discount rate of 20%. Provide the variables you entered into Excel and your final calculation of net present value after-tax. Compute the internal rate of return after-tax. Provide the variables you entered into Excel for the calculation.

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for formulas and calculations, refer the images below -

ekkarill92 answered 2 years ago
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