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Suppose a 10-year project requires the following initial investment costs. Building: - Lasts for 10...

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Accounting

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Suppose a 10-year project requires the following initial investment costs. Building: - Lasts for 10 years - Initial cost of $60,000 Equipment - Last for 8 years - Initial cost \$15,000 Vehicles: - Last for 5 years - Initial cost of $45,000 Assume the investor is using the straight-line depreciation method. The project eams annual revenue of $65,000 and pays an annual operating cost of $12,000. Assume a 5% discount rate, 25% tax rate, and ignore salvage value of assets. Please round ALL answers to two decimals. Do not include any commas (.) " $ " or "\%" in your answers. Market CBA Perspective: The Market NPV is \$ and the Market IRR is \$ Private/Investor CBA Perspective: The Private Perspective NPV of this project is \$ and the Private Perspective IRR of this project is If the discount rate equals the borrowing rate of the fund, using the IRR rule, the investor should (acceptreject) the project

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