Dorothy just graduated from colide. Since she is starting her own business, it's time to...
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Dorothy just graduated from colide. Since she is starting her own business, it's time to upgrade from her clunker to a reliable vehicle. Dorothy has the option to purchase a new car for her business at a cost of $25,017 (life of 7 years with no salvage valuel, estimating that it would help her bring in additional annual net operating cash flows of $9,300 over the life of the car. Determine the simple payback period and the IRR for this imvestment. Dorothy expects her business income to be sub/ect to a 30% tax tate. (Round simple parback period to 3 decimal places, e.3. 15.256 and IRR to 2 decimal places, e.s. 15.25\%. Round intermediate cafculation to 2 decimat places, e.8. 15.25.)
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