You are the financial manager of an organisation and are planning to invest 20,000 on a...

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You are the financial manager of an organisation and are planning to invest £20,000 on a new piece of machinery. This machinery will have a useful economic life of 5 years and the cash flows associated with it are expected to be £4,300 annually. The discount rate is 2% (for part b). Required Calculate the IRR of the project b. If there is a 18% WDA for the above investment and the corporate Tax Rate is 20%, calculate the NPV of the project at the end of the 5th year. You are the financial manager of an organisation and are planning to invest £20,000 on a new piece of machinery. This machinery will have a useful economic life of 5 years and the cash flows associated with it are expected to be £4,300 annually. The discount rate is 2% (for part b). Required Calculate the IRR of the project b. If there is a 18% WDA for the above investment and the corporate Tax Rate is 20%, calculate the NPV of the project at the end of the 5th year.

Answer rating: 100% (QA)

Investment Analysis New Machinery a Calculating the Internal Rate of Return IRR Due to the complexity of IRR calculations we cant find the exact IRR u... View the full answer