please help, will like for answer!
A company is considering the purchase of a new system for manufacturing pre-cast concrete beams that costs $800k and will benefit them annually by increasing their sales. The machine expected service life is 5, 7, or 8 years with probabilities of 25%, 40% and 35% respectively. They know that the more they use the machine each year, the lower its salvage value would be as shown on the following decision tree. What is the probability that the Internal Rate of Return of this investment is over 18%? SALVAGE LIFE BENEFIT 5yrs occision 25% facisian $800k 745 40%. Sys Decision xx $2ook/yr sxzook s >$250k/yr Se&isok $300d yr selook $780xyr SK $ 2504 y Slook 7 $150k/yr sulook $ 180kbyr SB80k. ENCIRNENT ACQUISTION Decision 35% QUESTION 5 A company is considering the purchase of a new system for manufacturing pre-cast concrete beams that costs $800k and will benefit them annually by increasing their sales. The machine expected service life is 5, 7, or 8 years with probabilities of 25%, 40% and 35% respectively. They know that the more they use the machine each year, the lower its salvage value would be as shown on the following decision tree. What is the probability that the Internal Rate of Return of this investment is over 18%? SALVAGE BENEFIT surs facision 2.9% facision $800k 745 40%. Decision, $200k/yr S2ook $250k/yr Sedisok 43001 yr School $180ktyr S2140E $2004 Yr Slook $ 150k/yr salook $ 180kfyr SubBok Sy's EQUIPMENT ACQUISTION JOECISION 35% $250k/yr Se&isok $300d yr selook $780xyr SK $ 2504 y Slook 7 $150k/yr sulook $ 180kbyr SB80k. ENCIRNENT ACQUISTION Decision 35% QUESTION 5 A company is considering the purchase of a new system for manufacturing pre-cast concrete beams that costs $800k and will benefit them annually by increasing their sales. The machine expected service life is 5, 7, or 8 years with probabilities of 25%, 40% and 35% respectively. They know that the more they use the machine each year, the lower its salvage value would be as shown on the following decision tree. What is the probability that the Internal Rate of Return of this investment is over 18%? SALVAGE BENEFIT surs facision 2.9% facision $800k 745 40%. Decision, $200k/yr S2ook $250k/yr Sedisok 43001 yr School $180ktyr S2140E $2004 Yr Slook $ 150k/yr salook $ 180kfyr SubBok Sy's EQUIPMENT ACQUISTION JOECISION 35%