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Show your work please (if using Excel show formulas). Assume project lasts 4 years Operating income 100 Tax rate 21% Machine cost 50 Straight line
Show your work please (if using Excel show formulas).
Assume project lasts 4 years
Operating income 100
Tax rate 21%
Machine cost 50
Straight line depreciation over 5 years
Salvage value after 5 years = 20
Working capital 2 per year , 3 initially
WACC = 10%
- What is the IRR
- What is the NPV
- What is the payback
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