Calculate the net present value and internal rate of return

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Reference no: EM132045518

Kingston Corp. is considering a new machine that requires an initial investment of $520,000 installed, and has a useful life of 8 years. The expected annual after-tax cash flows for the machine are $76,000 during the first 3 years, $87,000 during years 4 through 6 and $92,000 during the last two years.

Show work please so I can understand how to do it, thank you!!!

1. Calculate the Internal Rate of Return (IRR)

2. Calculate the Net Present Value (NPV) at the following required rates of return: (a) 3% (b) 4% (c) 8% (d)9%

Reference no: EM132045518

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