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Problem Set

rrodiem IU$-$L$($tconomic LIIe$)$

Economic Life

The Scampini Supplies Company recently purchased a new delivery truck. The new truck cost $$22,500,$ and it is expected to generate net after$-$tax operating cash flows, including depreciation of $$6,250$ per year. The truck has a $5-$year expected life. The expected salvage values after tax adjustments for the truck are given below. The company's cost of capital is $9$ percent.

$\backslash$table$[[$Year$,$Annual Operating Cash Flow,Salvage Value$],[0,$$$22,500,$$$22,500$

Problem $2-$A project has an initial cost of $45000$$ expected net cash inflows of $9000$$ per year for $6$ years and a cost of capital of $9\%.$ What is the projects MIRR? Round answer to two decimal places.

Please solve both