a: IRR is that rate of return at which NPV is zero. It is that rate at which the present value of cash inflows is exactly equal to the initial outlay. Hence it is a percentage rate.
b: Capital recovery cost is the annual equivalent cost of investment minus the salvage value.
c: The equation used here is the present value of perpetuity which is Annual cash flow/ Rate
Amount to be deposited at time 0 = 10000/6%=166666.67
5:52 PM Aisha 4/9/19, 5:50 PM TFW ta) Define Internali Rate of Return and state whether it is a d...