What is the IRR of this investment

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Reference no: EM131159512

CPM Construction plans to buy a truck for $150,000 and expects $100,00/year as an income. The company plans to sell it fro $15,000 at the end of Year 5. The annual operating cost of the vehicle is $60,000.

1) What is the IRR of this investment?

2) If the company uses a MARR of 12%, is this an attractive investment? Explain the reasoning for your answer.

Reference no: EM131159512

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