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%.
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.