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.