Explore BrainMass

Explore BrainMass

    NPV, IRR and MIRR

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Given the following capital project data:

    Cost of automation system (invoice): $750,000
    Transportation and installation: $150,000
    Training: $100,000
    Firm's WACC: 10%
    Firm's tax rate: 40%
    Depreciation 5 years, straight line
    Life of project: 3 years
    Salvage value: $375,000
    Annual cost savings (net): $100,000
    Increased annual sales (net): $200,000

    Calculate (1) the payback, (2) the discounted payback, (3) the NPV, (4) the IRR, (5) the MIRR, and (6) your recommendation on the project.

    © BrainMass Inc. brainmass.com June 4, 2020, 3:42 am ad1c9bdddf
    https://brainmass.com/business/modified-internal-rate-of-return/npv-irr-and-mirr-529356

    Solution Preview

    NPV AND IRR
    Given the following capital project data:

    Cost of automation system (invoice): $750,000
    Transportation and installation: ...

    Solution Summary

    Solution helps in calculating (1) the payback, (2) the discounted payback, (3) the NPV, (4) the IRR, (5) the MIRR, and (6) your recommendation on the project.

    $2.19

    ADVERTISEMENT