Question: Suppose a new pump costs $600. It has a useful life of 5 years. In each of those five years the operating costs of the

Suppose a new pump costs $600. It has a useful life of 5 years. In each of those five years the operating costs of the pump are $50 and the returns to the pump are $200.
Put this information into a spreadsheet and
a. Find the NPV using a 7% Find the NPV using a 10% What happens to NPV when the increases?
d. Find the IRR.

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