Asked by Anonymous
                Preston Corporation is evaluating its potential investment in a $225,660 piece of equipment with a three-year life and no salvage value.  The company anticipates that pre-tax cash flows in each of the three years will equal to 22%, 44%, and 66%, respectively, of the investment’s face value.  The tax rate is 28%.  Pre-tax cash flows, discounted at 10 percent, are $427,697, undiscounted after-tax cash flows are $279,185, and after-tax cash flows, discounted at 10 percent, are $225,660.  The internal rate of return is:
            
            
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                    Answered by
            Writeacher
            
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Also, if all you do is post your entire assignment, <b>with no evidence of thinking on your part</b>, nothing will happen since <u>no one here will do your work for you</u>.
But if you are specific about what you don't understand about the assignment or exactly what help you need, someone might be able to assist you. <b>Ask specific questions!</b>
                    Answered by
            Anonymous
            
    Preston Corporation is evaluating its potential investment in a $225,660 piece of equipment with a three-year life and no salvage value. The company anticipates that pre-tax cash flows in each of the three years will equal to 22%, 44%, and 66%, respectively, of the investment's face value. The tax rate is 28%. Pre-tax cash flows, discounted at 10 percent, are $427,697, undiscounted after-tax cash flows are $279,185, and after-tax cash flows, discounted at 10 percent, are $225,660. The internal rate of return is:
a. 10%
 
b. 44%
 
c. 22%
 
d. 23.7%
 
    
a. 10%
b. 44%
c. 22%
d. 23.7%
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