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Capital Investment Information Investment A Investment B Real Interest Rate: Inflation: Risk Factor: 1.5% 2.5% 1.5% Year Year Costs Cost of Investment: Salvage Value Investment

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Capital Investment Information Investment A Investment B Real Interest Rate: Inflation: Risk Factor: 1.5% 2.5% 1.5% Year Year Costs Cost of Investment: Salvage Value Investment A: Salvage Value Investment B. $23,000 $0 $1,500 Revenue or Savings 1 10,000 2 2 10,000 3 15.000 41 20 000 5 25.000 6 32,000 7 38,000 8 42.000 9 44,000 10145,000 Costs 15,000 17.000 19,000 18.000 19.000 20.000 21,000 22.000 23,000 24.000 Revenue or Savings 1 20,000 2 22,000 3 25,000 41 4 26,000 5 27,000 6 28,000 729,000 8 30,000 9 31,000 10 32,000 15,000 17,000 19,000 18,000 19,000 20,000 21,000 22,000 23,000 24,000 Use the information on this page in the "HW Capital Investment" tab to answer the investment analyses questions. Internal Rate of Return (IRR) Directions. fill in the shaded cells to calculate the IRR Net Cash Flows Year Purchase Price Net Cash Flow Salvage Value $0 2 3 4 5 6 7 8 9 NOVO $0 $0 $0 $0 $0 $0 $0 $0 $0 5. IRR #NUM! Internal Rate of Return (IRR) Directions: fill in the shaded cells to calculate the IRR Net Cash Flows Purchase Price Year 0 1 Net Cash Flow Salvage Value $0 $0 13 MA N. 5 6 7 $0 $0 $0 $0 $0 $0 $0 $0 $0 | IRR #NUM

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