Question
You are the financial manager of an organisation and are planning to invest 20,000 on a new piece of machinery. This machinery will have a
You are the financial manager of an organisation and are planning to invest 20,000
on a new piece of machinery. This machinery will have a useful economic life of 5 years and the cash flows associated with it are expected to be 4,300 annually. The discount rate is 2% (for part b).
Required
a. Calculate the IRR of the project
b. If there is a 18% WDA for the above investment and the corporate Tax Rate is 20%, calculate the NPV of the project at the end of the 5th year.
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Options Futures And Other Derivatives
Authors: John C. Hull
7th Edition
0136015867, 9780136015864
