Kingston Corp. is considering a new machine that requires an initial investment of $520,000 installed, and has a useful life of 8 years. The expected annual after-tax cash flows for the machine are $76,000 during the first 3 years, $87,000 during years 4 through 6 and $92,000 during the last two years.
Show work please so I can understand how to do it, thank you!!!
1. Calculate the Internal Rate of Return (IRR)
2. Calculate the Net Present Value (NPV) at the following required rates of return: (a) 3% (b) 4% (c) 8% (d)9%