- You just finished analyzing a capital investment that will produce equal annual cash flows of $25 million over its 5- year life. The resulting NPV is $8 million and the IRR is 15.13%. You assumed a $30 million salvage value, $20 million above its adjusted tax basis, and a 35% marginal tax rate. What discount rate did you use to value this investment?
The discounting rate... View the full answer