Irr tax effectsthe pearce club inc is considered investing, Ask an Expert

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IRR Tax Effects

The Pearce Club, Inc., is considered investing in an exercise machine that costs $5,000 andwould increase revenues by $1,500 a year for five years. The machine would be depreciated over its five-year useful life via the straight-line method and would have no salvage value.

Calculate the equipment's internal rate of return. Assume that the tax rate is 30 percent. Do not enter the percent sign (%). Round your final answer to two decimal places.

_____%

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91362351

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