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PLEASE HELP ME. THANK YOU A proposed project will require the immediate investment of $50,000 and is estimated to have year-end revenues and costs as
PLEASE HELP ME. THANK YOU
A proposed project will require the immediate investment of $50,000 and is estimated to have year-end revenues and costs as follows: Cash Flow Estimates Year Revenue Costs SCOT000 $75,000 95,000 100,000 90,000 60,000 80,000 75,000 77,500 47,500 An additional investment of $20,000 will be required at the end of the third year. The project would terminate at the end of the fifth year, and the assets are estimated to have a salvage value of $25.000 at that time. MARR is set at 15% A. Using 15% and 20% interest rates, what is the IRR of the project? Romd-off in 2 decimal values, (30pts) B. Determine the ERR of the project. Round-off in 2 decimal values (20pts) C. Is the investment justified? Explain your answer briefly. (pt)Step by Step Solution
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