Determine the after-tax internal rate of return

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Wayne Moldings. Inc. has acquired a new die-casting mold at a cost of $2 million. Projected benefits from the mold for the next five years are: $350K, $450K. $500K. S350K. and S300K respectively. It is expected that at the end of the fifth year, the mold will be sold for S750K. Assuming SL depreciation and a marginal tax rate of 50%. determine the after-tax internal rate of return (i*) that will result from this investment.

Reference no: EM131164643

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