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Home / Questions / An equipment A has a cost of Taka 70,000 and net cash flow of Taka 15,000 per year for fiv...

An equipment A has a cost of Taka 70,000 and net cash flow of Taka 15,000 per year for five years. A substitute equipment B would cost Taka 60,000 and generate net cash flow of Taka 20,000 per year

An equipment A has a cost of Taka 70,000 and net cash flow of Taka 15,000 per year for five years. A substitute equipment B would cost Taka 60,000 and generate net cash flow of Taka 20,000 per year for six years. The required rate of return of both equipment’s is 10%. Calculate the IRR and NPV for each equipment. Which equipment should be accepted and why?  

 

May 05 2021 View more View Less

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