Patricks Army Supply is considering whether to invest in a piece of equipment that requires an investment

Question:

Patrick’s Army Supply is considering whether to invest in a piece of equipment that requires an investment of $250,000 today. The project will provide net cash flows of $50,000 per year for eight years, and it will have a of $51,509 at the end of eight years. Calculate the internal rate of return.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...