Opportunity to invest in alternative project

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You can sell your property for $375,000 today after-tax. If the property is held, the annual after-tax cash flow will be: $40,000 for years 1 to 5, $55,000 for years 6 to 10. When sold in Year 10, you expect to receive $500,000 after-tax. What is the IRR if you hold onto the property? What should you do if you have an opportunity to invest in an alternative project and receive a 14% rate of return?

Reference no: EM132030850

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