Revelstoke Printing

1. What is the approximate after-tax IRR on a two-year project for which the first cost is $12 000, savings are $5000 in the first year and S10 000 in the second year, and taxes are at 40%?
2. A new binder will cost Revelstoke Printing $17 000, generate net savings of $3000 per year over a nine-year life, and be salvaged for $1000. Revelstoke's before-tax MARR is 10%, and it is taxed at 40%. Wha t is its approximate after-tax IRR on this investment? Should the investment be made?

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