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You are evaluating an investment alternative that costs $65,000, is expected to last 5 years, and has a $8000 salvage value. The investment is
You are evaluating an investment alternative that costs $65,000, is expected to last 5 years, and has a $8000 salvage value. The investment is expected to generate an operating cash inflow of $16,000 each year for years 1, and 2, and $18,000 in years 3, 4, and 5. The operating cash outflow each year is the first 4 numerical digits of your OSU CWID ID number (for example, if your number is A2023****, then your operating cash outflow is $2,023). Calculate the payback period for this investment. a. Calculate the simple rate of return for this two investment. b. Using a 9% discount rate, calculate the NPV for this investment. C. d. Calculate the IRR for this investment.
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