How to find the project irr

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NPV and IRR

Lalala Company is considering an investment in a machine that costs $36,048 and would result in cash savings of $10,000 per year for 5 years. The company's cost of capital is 10%.

Question 1: Compute the project's NPV at 10%, 12%, and 14%.

Question 2: Compute the project's IRR.

Question 3: Suppose the company uses the NPV model. Would it accept the project? Why or why not?

Question 4: Suppose the company uses the IRR model. Would it accept the project? Why or why not?

Reference no: EM132554994

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