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Question 5: (20 Marks) and would require a $1,120,150 investment. The company's required rate of return is 12%. The BAHRAIN, Inc., is considering an investment
Question 5: (20 Marks) and would require a $1,120,150 investment. The company's required rate of return is 12%. The BAHRAIN, Inc., is considering an investment in an equipment that would have a ten-year life following information related to investment have been provided below: Annual Net Cash Flows Annual Depreciation Expense Required: $215,000 $ 9,030 Compute the following (Show your calculations and put your final answer in the box below) 1. Compute the project's internal rate of return (round up to one decimal place). 2. Compute the project's payback period 3. Compute the project's simple rate of return 4. Assume that in year 6 the equipment would required maintenance and repairs of $120,000 and later would be sold at the end of the projects life for a salvage value of $15,000. Compute the project's Net Present Value 70 TABLE 1 Perioda
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