Could you kindly assist me to calculate the NPV following below question ?
Able limited is considering a new project for which below information is available:
Initial cost $200,000 Expected life 5 years Estimated scrap value $20,000 Addition revenue from the project $120,000 per year Incremental cost of the project $ 30,000 per year Cost of capital 10% Kindly help me to calculate NPV ,IRR and ARR based on the above information as I couldn’t resolve it giving try many times . Looking forward to getting your kind support at the earliest