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stion 27 c) Calculate the IRR (Internal Rate of Return) of the new machine (using the 10% and 30% discount rates provided). ( 3 marks)

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stion 27 c) Calculate the IRR (Internal Rate of Return) of the new machine (using the 10% and 30% discount rates provided). ( 3 marks) Make use of the template provided above and do not round off your calculations until the final answer. NPVa= Round off your answer to the nearest whole number with no E sign. If the number is a negative value, include the minus sign e.g. - 100000 NPVb= Round off your answer to the nearest whole number with no f sign. If the number is a negative value, include the minus sign e.g. -100000 IRR= % round off your answer to the nedrest whole number with no \% sign Years Months d) Calculate the annual depreciation and the Accounting Rate of Return (ARR) of the machine (3 marks) Annual Depreciation = ARR= \begin{tabular}{|l|} \hline Choose... \\ \hline54,167 \\ 50,833 \\ 65,000 \\ 61,000 \\ 20,000 \\ 4,000 \\ \hline \end{tabular} ur answer to the nearest whole number with no \% sign Project B This will involve an initial outlay of 325,000. The estimated life of the equipment is 6 years and there is an estimated scrap value of 20,000 at the end of its life. The annual running costs are estimated at 10,000 per annum and cash inflows to be 120,000 per annum. Additional Information ABC prefer the straight-line method as a method of depreciation For capital investment projects Stadler use a discount rates of 10% and 30% to calculate IRR. Stadler use a template for their calculations and this can be found on the link below; Capital Budgeting Template (click to download)

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