What is the IRR of project? How do you calculate Years Variables 0 1 2 CT Scanner
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What is the IRR of project? How do you calculate
| Years | Variables | 0 | 1 | 2 |
| CT Scanner Initial Purchase | 1750000 | |||
| Delivery, installation and training | 175000 | |||
| Annual maintenance contract | 25000 | 25000 | 25000 | |
| Estimated annual scan volume | 2000 | |||
| Supply cost per scan 1 | 130 | 137.8 | 146.06 | |
| Technician salary and benefits 2 | 84000 | 88200 | 92610 | |
| Average charge per scan3 | 325 | 341.25 | 358.31 | |
| Expected useful life of the scanner | 8 years | |||
| Estimated salvage value at end of period | 250000 | |||
| Annual Revenue | 650000 | 682500 | ||
| Annual Expense | 369000 | 388800 | ||
| Net Cash Flow | 281000 | 293700 | ||
| Discount rate | 8.00% | |||
| PV of salvage | 231481.4815 | 214334.7051 | ||
| PV of future cash flows | 260185.1852 | 251800.4115 | ||
| NPV of project | 491666.6667 | 466135.1166 | ||
| IRR of project |
How do you calculate IRR of project?
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