Calculate the after-tax irr given the information, Finance Basics

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Calculate the after-tax irr given the information

Problem

An oil company uses a technology which it purchased for $30 million. Operating costs are $3.2 million per year, and output is 1,400 barrels per day. Calculate the after-tax IRR given the following information: The corporate tax rate is 25%, the price of oil is $80 per barrel, the service life of the technology is 10 years and salvage value is $5 million. If the after-tax MARR is 12%, is this a good investment?

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Finance Basics: Calculate the after-tax irr given the information

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