find the IRR?

                                                                                                     

Cost of leasing
Lease Payment		$ 4,00,000	$ 4,00,000	$ 4,00,000	$ 4,00,000
Tax Savings on Lease Payments		$ -1,60,000	$ -1,60,000	$ -1,60,000	$ -1,60,000
Maintenance Expenses	$ 75,000	$ 75,000	$ 75,000	$ 75,000
Tax Savings on Maintenance Expenses	$ -30,000	$ -30,000	$ -30,000	$ -30,000
Net Cash Flow	$ 45,000	$ 2,85,000	$ 2,85,000	$ 2,85,000	$ 2,40,000
Net Advantage of leasing
PVF @15% or 9% after tax	1.0000	0.9174	0.8417	0.7722	0.7084
Present Value of Cost of Owning	$ 10,44,489
Present Value of Cost of leasing	$ 9,36,441
Net Advantae of Leasing	$ 1,08,048

Net advantage of Leasing= $108,048

The IRR of the above cash flow is

Year	Particulars	Amount
0	Cost of Asset	$14,70,000
1	Lease Rental+Taxsavings on Depreciation	$ -6,28,000
2	Lease Rental+Taxsavings on Depreciation	$ -7,00,000
3	Lease Rental+Taxsavings on Depreciation	$ -5,20,000
4	Lease Rental+Taxsavings on Depreciation+Salvage avlue after tax	$ -5,92,000
	IRR at 9%guess (after tax)	24.57%