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Matchroom's investment appraisal committee have worked out the Net Cash flows in the working shown below. Additional details of the project are also given below.

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Matchroom's investment appraisal committee have worked out the Net Cash flows in the working shown below. Additional details of the project are also given below. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Net Cashflows 114,285.71 25,528.57 27,795.21 30,257.55 32,932.34 39,694.93 Additional Information The cost of the machine is 115,000 with a residual value of 3,857 Matchroom prefer the straight-line method as a method of depreciation For capital investment projects ABC Ltd uses a discount rate of 10% and 20% for their IRR calculations. . Calculate the IRR (Internal Rate of Return) of the new machine (using the 10% and 20% discount rates provided). 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 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 sign. If the number is a negative value, include the minus sign e.g. - 100000 IRR= % Round off your answer to the nearest whole number with no % sign

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