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What is the internal rate of return

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Reference no: EM131780164

(NPV, IRR) Cando Technologies is considering purchasing a networked computer system for $82,000. It will enable the company to generate $35,000 more in profit each year and will have a salvage value of $10,000 at the end of five years. The amortization on the computer system will be $14,400 per year.

a. If the company has a required rate of return of 12%, what is the net present value of the proposed investment?

b. What is the internal rate of return?

Reference no: EM131780164

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