Nominal annual rate compounded daily

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1. What is the IRR of the following project? Invest $1000 in a new machine today that will generate $300 of annual after-tax cash flows for 6 years (at the end of each year). You sell the equipment for $500 at the end of year 6 (it had been depreciated to $100). Assume a 20% tax rate. What is your IRR?

2. What is the future value 40 years from now of an investment with a 7% nominal annual rate compounded daily when deposits are made monthly for $10,000 for the first 240 months?

Reference no: EM132071098

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