What is the internal rate of return of investment

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A firm is considering investing in a 25-year capital budgeting project with a net investment of $14 million. The project is expected to generate annual net cash flows each year of $2 million and a terminal value at the end of the project of $1 million. The firm's cost of capital is 14 percent, and the marginal tax rate is 40%. What is the internal rate of return of this investment?

Reference no: EM132558439

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