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A company is considering the purchase of new software that costs 8549 (at year 0). Assume a cost of capital of 5% and the cash
A company is considering the purchase of new software that costs 8549 (at year 0). Assume a cost of capital of 5% and the cash inflow is projected to be $11365 at the end of ycar 1. By how much would our Internal Rate of Return exceed our cost of capital? Your answer should be accurate to 2 decimal places. Hint. this is a very simple scenario so you should be able to calculate the IRR rate, so if you calculated your IRR to be 40.56% and your Cost of Capital was 25%, your answer would be 15.56
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