What is the npv - irr and probability index

Reference no: EM13984636

Question:

Foley systems is considering a new investment whose data are shown below.

The equipment would be depreciated on a straight-line basis over the project''S 3 years life, would have a zero salvage value and would require no additional net operating working capital.

Revenues and operating costs are expected to be constant over the project''S life.

Tax rate is 35%. What is the Npv,IRR,and probability index?

Cost of capital. 10%
Net investment. 75,000
Revenue. 75,000
Other Opportunity Cost 25,000
Depreciation. 33.33%
Tax rate. 35%

Reference no: EM13984636

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