WXY Corporation is evaluating two exclusive investments. The company's cost of capital is 13% and...

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Accounting

WXY Corporation is evaluating two exclusive investments. The company's cost of capital is 13% and the tax rate is 27%. The details are given below:

Particulars

Investment C

Investment D

Cost of investment

14,00,000

16,50,000

Expected life

5 years

5 years

Annual Income (before Tax & Depreciation)

4,00,000

5,00,000

Depreciation is charged on a straight-line basis. You are required to calculate: a. Internal Rate of Return (IRR) b. NPV c. Payback period

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