Question
Calculate NPV and IRR Initial investment costs $275,000 Net annual savings $55,000, increasing 2% per year, starting in year 2 Estimated useful life of centre
Calculate NPV and IRR
| Initial investment costs | $275,000 |
| Net annual savings | $55,000, increasing 2% per year, starting in year 2 |
| Estimated useful life of centre | 10 years |
| CCA rate | 30 percent |
| Corporate tax rate | 15 percent |
| Weighted average cost of capital | 8 percent |
The Slavage Value is 0
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Quantitative Methods For Business
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam
11th Edition
978-0324651812, 324651813, 978-0324651751
