What is this project internal rate of return

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Reference no: EM131556119

Hydroponics is considering adding another greenhouse that would cost $95,000 and generate $20,000 in annual net cash flows over its 8 year expected life. The greenhouse would be depreciated on a straight-line basis to zero and the salvage value is also expected to be zero. If the firm has a marginal tax rate of 40 percent, what is this project’s internal rate of return?

a. between 20 and 24%

b. between 13 and 14%

c. between 28 and 32%

d. between 7 and 8%

Reference no: EM131556119

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