Acme is considering adding an additional driving range to its facility. The ra

Acme is considering adding an additional driving range to its facility. The range would cost $76000 would be depreciated on a straight line
basis over its 7-year life and would have a zero salvage value. The anticipated income from the project is $34000 a year with $14400 of that amount being
variable cost. The fixed cost would be $16200. The firm believes that it will earn an additional $13000 a year from its current operations should the driving
range be added. The project will require $2000 of net working capital which is recoverable at the end of the project. What is the internal rate of return on
this project at a tax rate of 34 percent?