The company can purchase new planning software for $3,600.
The company can purchase new planning software for $3,600. The software
(asset) has a two-year life, will produce a savings of $600 in the first year and $4,200 in the second year.
The discount rate is 15%. Calculate the project’s payback and discounted payback period assuming steady cash flows. Also calculate the project’s NPV and IRR. Should the project be funded?
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