A company expects to earn $350,000 per year for 10 years by purchasing a $1.5 million...

A company expects to earn $350,000 per year for 10 years by purchasing a $1.5 million equipment. The asset will be sold for $300k after 10 years. The effective tax rate for the company is 30%, the interest-free MARR is 15% and the average inflation is 2.2%. Compute the IRR for the company.

I found the depreciation to be using Straight Line Analysis: $120000 and the taxable income to be $230000. If anyone could help me ill grateful!

Expert Solution

ekkarill92 answered 2 years ago

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