Question 1: Company ABC purchases equipment, operating time is 5 years, depreciation by straight-line method. Other items are table below:
|
Items
|
Costs (million USD)
|
|
Purchase equipment
|
40
|
|
Installation cost
|
10
|
|
Warranty cost annually
|
2
|
|
Others cost
|
4
|
|
Revenue annually
|
12
|
|
Tax
|
0%
|
What is IRR?