Old Dominion is considering adding a new type of wing tamer to its trailers, which will save the company in fuel costs each year and the required rate of return is 9%. The expected life of the units are 5 years and the expected cash flows for each unit are as follows:

$15,000, $3,200,$3,700,$4,200,$4700,$5,200

Calculate the projects NPV, IRR, MRR and Payback and label each answer clearly.

Answer rating: 100% (QA)

Year Cash Flows Cumulative Cash Flow 0 ... View the full answer