A firm considers to buy a new 3D printer whose cost is $ 46 100. The cost of 3D printer will be paid in 2022. The expect

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answerhappygod
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A firm considers to buy a new 3D printer whose cost is $ 46 100. The cost of 3D printer will be paid in 2022. The expect

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A firm considers to buy a new 3D printer whose cost is $ 46 100.
The cost of 3D printer will be paid in 2022. The expected cash
flows of this investment are as follows:
2023: $ 13 200
2024: $ 13 200
2025: $ 13 200
2026: $ 13 200
2027: $ 13 200
a) Find the Internal Rate of Return (IRR) of this project.
b) Given that the current annual interest rate is 15% and the
risk premium appropriate for this investment is 5%; should the firm
accept or reject this investment.
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