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What is the IRR of project? How do you calculate Years Variables 0 1 2 CT Scanner Initial Purchase 1750000 Delivery, installation and training 175000

What is the IRR of project? How do you calculate

Years Variables 0 1 2
CT Scanner Initial Purchase 1750000


Delivery, installation and training 175000


Annual maintenance contract 25000
25000 25000
Estimated annual scan volume 2000


Supply cost per scan 1 130
137.8 146.06
Technician salary and benefits 2 84000
88200 92610
Average charge per scan3 325
341.25 358.31
Expected useful life of the scanner 8 years


Estimated salvage value at end of period 250000


Annual Revenue

650000 682500
Annual Expense

369000 388800
Net Cash Flow

281000 293700
Discount rate 8.00%


PV of salvage

231481.4815 214334.7051
PV of future cash flows

260185.1852 251800.4115
NPV of project

491666.6667 466135.1166
IRR of project



How do you calculate IRR of project?

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