(a) You work for a large printing company and have been asked to investigate the purchase of...
Fantastic news! We've Found the answer you've been seeking!
Question:
(a) You work for a large printing company and have been asked to investigate the purchase of a new printing machine. The machine costs €85000 at the beginning of 2017 and it will be replaced at the end of 2021. During these 5 years the net cashflows are detailed below. Year ended Net Cashflow 2017 35000 2018 40000 2019 25000 2020 10000 2021 (8900) (a) Using a discount rate of 10%, find the NPV of this project. (20 marks)
(b) Using a discount rate of 20 % find the IRR (20 marks)
Related Book For
Accounting
ISBN: 978-0324401844
22nd Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac
Posted Date: