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Estimate the internal rate of return

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Reference no: EM133003326

It is being considered to invest in a project that is intended to be financed with 75% debt. The loan runs over the project's life of three years and has an interest rate before tax of 8% per year. The total return on capital after tax is 9%.

Estimate the internal rate of return after tax for equity using the leverage formula.

Reference no: EM133003326

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