Highlands dairy is considering investing in a new milk cooling system with the following?

... characteristics: A initial investment: $ 7360000 no scrap value B expected economic life: 5 years, C sales volume

... characteristics: A initial investment: $ 7360000 no scrap value B expected economic life: 5 years, C sales volume: 1120000 liters par annum, D selling price: sh 15 per liters, E variable costs: sh 11 per liter, F fixed costs excluding depreciation $ 1628000 per annum. the company's hurdle rate is 15% and uses straight line method of depreciation. its marginal tax rate is 40%.

Required: (a) calculate the project internal rate of return (b) recalculate the IRR assuming each of the characteristics A

or:... characteristics: A initial investment: $ 7360000 no scrap value B expected economic life: 5 years, C sales volume: 1120000 liters par annum, D selling price: sh 15 per liters, E variable costs: sh 11 per liter, F fixed costs excluding depreciation $ 1628000 per annum. the company's hurdle rate is 15% and uses straight line method of depreciation. its marginal tax rate is 40%.Required: (a) calculate the project internal rate of return (b) recalculate the IRR assuming each of the characteristics A

Tags:economics,