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A bulldozer with purchase price of N4,500,000.00 is estimated to eliminate manual operations costing N1,100,000.00...

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Accounting

A bulldozer with purchase price of N4,500,000.00 is estimated to eliminate manual operations costing N1,100,000.00 per year. The machine will last for 5 years with a residual value of N600,000.00 at the end of its life. You are required to calculate:
(a) The discount cash flow (i.e. the internal rate of return).
(b) The net present value (NPV) if the cost of capital is 10%.
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