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JazzCo is considering a project with a first cost of $120,000, annual savings of $40,000 and a salvage value of $25,000. The project will last 4 years. JazzCo's MARR is 11% annual compounded annually. (a) Calculate the project IRR. Check with Excel. Include the Excel output with your assignment report. Use the rate function and Goal Seek. (6 marks) (b) Should jazzCo pursue the project, based on the value of the IRR? Why or why not? (5 marks) JazzCo is considering a project with a first cost of $120,000, annual savings of $40,000 and a salvage value of $25,000. The project will last 4 years. JazzCo's MARR is 11% annual compounded annually. (a) Calculate the project IRR. Check with Excel. Include the Excel output with your assignment report. Use the rate function and Goal Seek. (6 marks) (b) Should jazzCo pursue the project, based on the value of the IRR? Why or why not? (5 marks)
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aYearly cashflow b The IRR of the project is greater than th... View the full answer
Related Book For
Financial Management Principles and Applications
ISBN: 978-0133423822
12th edition
Authors: Sheridan Titman, Arthur Keown, John Martin
Posted Date:
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