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20 21 A new IT server for a company will cost $437,703.00 today. The company expects the server will create an incremental cash flow to
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A new IT server for a company will cost $437,703.00 today. The company expects the server will create an incremental cash flow to the firm of $140,145.00 per year. The company wants an 8.00% return for all capital budgeting projects. The company will run the server for the next 5 years. What is the IRR of this project? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Wll accept decimal format rounded to 4 decimal places (ex: 0.0924)) An investor on the "Shark Tank" has offered an entrepreneur a deal with his company. Part of the deal is the investor wants a royalty on his investment. The investor will "lend" the entrepreneur $261,792.00 but wants $3.00 per unit sold. The entrepreneur expects to sell 23,489.00 units per year each year going forward in perpetuity. What is the IRR for the investor? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))Step by Step Solution
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