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What is the project irr for south park development

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Reference no: EM132643663

Problem 1: The director of capital budgeting of South Park Development Corporation is evaluating a project that will cost $200,000; it is expected to last for 10 years and produce after-tax cash flows, including depreciation, of $44,503 per year. If the firm's cost of capital is 14% and its tax rate is 40%, what is the project's IRR?

Option 1. 12%

Option 2. -5%

Option 3. 14%

Option 4. 8%

Option 5. 18%

Reference no: EM132643663

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