Explore BrainMass

Explore BrainMass

    Internal Rate of Return of a Project

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Given the following information and assuming straight-line depreciation to zero, what is
    the IRR of this project? Initial investment = $6,000; life = 4 years; cost savings = $2,500
    per year; salvage value $2,000 at the end of year 4; tax rate = 35%; discount rate 10%.

    © BrainMass Inc. brainmass.com March 4, 2021, 8:21 pm ad1c9bdddf

    Solution Summary

    This solution shows step-by-step calculations in an Excel spreadsheet to determine the internal rate of return of a project using the initial investment, cost savings, salvage value, and tax rate.