1. A new machine will cost $100,000. Net cash flow before depreciation and taxes are $250,000 per year for 5 years. The machine would be depreciated (straight-line) over 5 years with no salvage value.
a) What is annual net cash flow after depreciation and taxes? 25,000 21,000 28,000 23,000 or none
b) What is internal rate of return? 8.25% 4.85% 3.80% 6.20% or none