Download the attachment and use it to present your calculations and answers to the questions below:
Given the following: An investment costing $200,000 will reduce operating costs by $35,000 per year for 12 years. The required rate of return is 18%.
Answer the following questions in the spreadsheet provided.
- Determine the internal rate of return on the investment, ignore taxes.
- Determine the net present value of the investment, ignore taxes.
- Should the investment be undertaken? Why?
- Show all calculations and support your investment decision with calculations.