The discount rate fro the firm is 10 what is the npv irr


A firm has a machine sitting idle in its warehouse. The machine originally cost $200,000 and was paid for in cash. The firm has recorded $100,000 in depreciation on this machine. The machine can be sold for scrap metal which would yield $20,000. The machine could be sold for $50,000. The manager, who earns $80,000, plans to use the machine in a new project that will generate net cash flow of $20,000 in perpetuity. The discount rate fro the firm is 10%. What is the NPV, IRR, and PI of the project?

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Financial Management: The discount rate fro the firm is 10 what is the npv irr
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