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Creative Software Corporation is considering a new project whose data are shown below. The required equipment...

Creative Software Corporation is considering a new project whose data are shown below. The required equipment has a 3-year tax life, after which it will be worthless, and it will be depreciated by MACRS over 3 years. Revenues and other operating costs are expected to be constant over the project’s 3-year life. What is the project’s IRR and NPV? Briefly discuss your results. Equipment cost $65,000 Sales Revenue each year $60,000 Operating Costs $25,000 Salvage Value $15,000 Tax Rate 35%

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

DISCOUNT RATE MISSING, SO CALCULATED IRR ONLY. PROVIDE DISCOUNT RATE, WILL CALCULATE NPV ALSO. THANK YOU

jeff jeffy answered 1 year ago
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