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Vector is a profitable company. The income tax rate is 40% of operating income each...

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Finance

Vector is a profitable company. The income tax rate is 40% of operating income each year.
The before-tax additional operating cash inflows from the hybrid bus are $240,000 in years 1-5. Net Initial investment is $661,500. Vector uses an 8% required rate of return for discounting after-tax cash flows. Annual depreciation for hybrid bus is $120,000. Calculate the following:
1. Net present value
2. Internal rate of return
3. Payback

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