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(Solved): Carol graduated from college. Since she is starting her own business, its time to upgrade from her c ...



Carol graduated from college. Since she is starting her own business, its time to upgrade from her clunker to a reliable vehicle. Carol has the option to purchase a new car for her business at a cost of $20,482 (life of 7 years with no salvage value), estimating that it would help her bring in additional annual net operating cash flows of $7,700.00 over the life of the car. Determine the simple payback period and the IRR for this investment. Carol expects her income to be subject to 30% tax.



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