What is the project irr for south park development corp

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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?

1. 12%
2. -5%
3. 14%
4. 8%
5. 18%

Reference no: EM132646952

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