KTN SpinningThe machinery costs $10 million and the expected Rs/$ exchange rate at the time of purchase is Rs.67. The machinery is expected to result in pre-tax cost savings of Rs.20 crores over the next five years, after which the machinery will be sold as scrap for Rs.5 crores. The cost of capital for the company is 13%. Calculate the NPV and IRR.

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Net Present Value NPV method is a method used for c... View the full answer