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1) a) Suppose than free cash flow of a five year investment is 500000 for each of the next five years. The investmene (purchase of
1) a) Suppose than free cash flow of a five year investment is 500000 for each of the next five years. The investmene (purchase of a machine) will have a salvage valae of 400000 in year 6 . The cost of investment is 2000000 . Given this informution, write the relevant equation which we use to find the IRR by using the information above ( 1 only want you fo write the correct equation . I) do not want its solution) b) Calculate the net PV of that project assuming a relevant discount rate of 20%
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