# Internal Rate of Return of a Project

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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%.

https://brainmass.com/business/internal-rate-of-return/what-irr-project-161781

#### 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.

$2.49