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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
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 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 NPVStep by Step Solution
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