Hi,

I am trying to solve this, could you please provide some guidance?

Question 1: You are the financial manager of an organisation and are planning to invest 20,000 on a new piece of machinery. This machinery will have a useful economic life of 5 years and the cash flows associated with it are expected to be 4,300 annually. The discount rate is 2% (for part b). It is good to use some plain language to briefly explain what you calculate and why.

Required

a.Calculate the IRR of the project

b.If there is a 18% WDA for the above investment and the corporate Tax Rate is 20%, calculate the NPV of the project at the end of the 5^th year.