What is the company exact after-tax irr on this investment

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Reference no: EM131356313

A new binder will cost Revelstoke Printing $17 000, generate net savings of $4000 per year over a nine-year life, and be salvaged for $1000. Revelstoke before-tax AIARR is 10%, it is taxed at 40%. What is the company exact after-tax IRR on this investment using a diminishing value rate for depreciation? Should the investment be made?

Reference no: EM131356313

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