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WXY Corporation is evaluating two exclusive investments. The company's cost of capital is 13% and the tax rate is 27%. The details are given below:
Particulars | Investment C | Investment D |
Cost of investment | 14,00,000 | 16,50,000 |
Expected life | 5 years | 5 years |
Annual Income (before Tax & Depreciation) | 4,00,000 | 5,00,000 |
Depreciation is charged on a straight-line basis. You are required to calculate: a. Internal Rate of Return (IRR) b. NPV c. Payback period
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