You are faced with a decision on an investment proposal. Specifically, the estimated additional income...
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Accounting
You are faced with a decision on an investment proposal. Specifically, the estimated additional income from the investment is $205,000 per year; the initial investment costs are $880,000; and the estimated annual costs are $60,000, which begin decreasing by $500 per year starting at the end of the second year. Assume a 9-year analysis period, salvage value, and MARR = 12%. Draw the cash flow diagram What is the IRR of this proposal? Use linear interpolation to obtain the answer to the nearest 1/2%. Is this proposal acceptable? Why or why not? What is the simple payback period? What is the discounted payback period
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