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MBA,MCS,M.phil
Devry University
Jan-2008 - Jan-2011
MBA,MCS,M.Phil
Devry University
Feb-2000 - Jan-2004
Regional Manager
Abercrombie & Fitch.
Mar-2005 - Nov-2010
Regional Manager
Abercrombie & Fitch.
Jan-2005 - Jan-2008
Skywards, Inc., an airline caterer, is purchasing refrigerated trucks at a total cost of $3.25 million. Aft er-tax net income from this investment is expected to be $750,000 for the next five years. Annual depreciation expense will be $650,000. The cost of capital is 17 percent.
a. What is the discounted payback period?
b. Compute the ARR.
c. What is the NPV on this investment?
d. Calculate the IRR.
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