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Capital Budgeting a) You are considering a project with an upfront capital of 2...

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Finance

Capital Budgeting

a) You are considering a project with an upfront capital of 2 million. Annual sales are estimated at 70,000 units at $20/unit and expected to last 3 years. Fixed cost are $50,000 per year. The corporate tax rate is 30%. Nwc is expected to be $125,000 up front, with an additional $125,000 required from year 2 on (once sales pick up). Your discount rate is 14%. Your Cca rate is 2

b) what is the Irra for the above question?

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