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JKL Corporation is planning to invest in one of two projects. The company's cost of capital is 15% and the tax rate is 30%. Project
- JKL Corporation is planning to invest in one of two projects. The company's cost of capital is 15% and the tax rate is 30%. Project details are given below:
Particulars | Project 1 | Project 2 |
Cost of project | 22,00,000 | 26,00,000 |
Expected life | 5 years | 5 years |
Annual Income (before Tax & Depreciation) | 6,75,000 | 8,00,000 |
- Depreciation is charged on a straight-line basis. You are required to calculate: a. Internal Rate of Return (IRR) b. NPV c. Payback period
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Calculus
Authors: Jon Rogawski, Colin Adams, Robert Franzosa
4th Edition
1319055842, 9781319055844
