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Compute the npv and the irr for the project

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A commercial smart oven that costs $150,000 is expected to operate for 6 years. The estimated salvage value at the end of 6 years is $25,000. The oven is expected to save the company $50,000 in annual operating costs before taxes and depreciation. The company will depreciate this system on a 5-year MACRS schedule. If the firm's cost of capital is 14% and its marginal tax rate is 30%, compute the NPV and the IRR for the project. (5-YEAR MACRS schedule: 20%, 32%, 19.2%, 11.52%, 11.52%, 5.76%)

Reference no: EM132632559

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