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Toyota Motors invests AED 110.000 in an electric car project with a lifetime of 35 years. The project gives an annual income of AED 12,000.
Toyota Motors invests AED 110.000 in an electric car project with a lifetime of 35 years. The project gives an annual income of AED 12,000. The yearly maintenance costs are AED 3,500 and the salvage value for the project after 35 years is AED 20.500. There is a single extra cost at the end of ten years of AED 20.800 for renovation of the project. Calculate the Internal Rate of Return (ROR) for the project. Use interest rate values of 5% and 7% and interpolate the IRR linearly. A. 26238.7 Calculate the present value using 5%. B.-1976.2 C No Calculate the present value using 7% D. Yes E-8599.24 Calculate the internal rate of return (IRR). If the company's minimum acceptable rate of return (MARR) is 7.2% should the company proceed with the project? F. 6.496 G. 7.296 H. 20128.2
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