Find the IRR of the asset to the right. If your cost of capital is 12%, should you invest in this asset? Justify your answer.

You are considering the purchase of another asset with an IRR of 12%. Should you invest in this asset or the one in Problem 4? Justify your answer.

Fill in the excel sheet and explain how to get answers:

PROBLEM 4
Inputs
0
1
2
3
Outputs
IRR
Invest?
Justification
Which asset?
Justification

0 (150,000) 1 57,000 2 67,000 3 57,000