Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

How do I comment on these findings? 3) Compute the IRR if the life of the equipment was 5 years, 9 years, comment on your

image text in transcribedHow do I comment on these findings?

3) Compute the IRR if the life of the equipment was 5 years, 9 years, comment on your finding. 142950:37500 in 5 years = IRR 9-10% 142950:37500 in 9 years = IRR 22% Item Year Cash Flows Cash Flows Amount FACTOR 9-10% Present value of cash flows after tax (142950) 142950 1 1.00 Initial Investment Cash inflows NPV 142950 37500 1-5 3.812 0 Item Year Cash Flows Cash Flows Amount FACTOR 21-22% Present value of cash flows after tax (142950) 142950 0 Initial Investment Cash inflows 1 1-5 142950 37500 1.00 3.812 NPV

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Alexander Hamilton On Finance Credit And Debt

Authors: Richard Sylla

1st Edition

0231174012, 978-0231184571

More Books

Students also viewed these Finance questions