Math of Finance

Subject: Depreciation, Cash Flows, Net Present Value, and Internal rate of Return - Do not use Excel use the proper formula attached below instead.

1 - An Asset costs $102,000 and has an expected life of 20 years at which time it will have a scrap value of $16,000. The asset will increase revenue by $22,000 after maintenance costs. Assume a tax rate of 42% and use the straight line method of depreciation to compute the internal rate of return for the investment.