The capital budgeting director of Sparrow Corporation is evaluating a project that costs $200,000, is expected to last for 10 years, and produces after-tax cash flows equal to $44,503 per year. If the firm's required rate of return is 14 percent and its tax rate is 40 percent, what is the project's internal rate of return (IRR)?
A. 8%
B. 14%
C. 18%
D. 5%
E. 20%
Answer: C
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Answer the following statement true (T) or false (F)
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