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QUESTION
Calculate Net present value and Internal rate of return using the following data:
Calculate Net present value and Internal rate of return using the following data:
Cost 120000
Profit Year 1 = 36000, 4000, 8000
Scrap value 12000
depreciation (200000-12000/3) = 36000
IRR and NPV values?
Am I correct when saying that both both depreciation and scrap are to be included in calculations since these effect cash flows?
