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XYZ Corp is evaluating two exclusive investments. The company's cost of capital is 9% and the tax rate is 28%. The details are as follows:
Particulars | Investment C | Investment D |
Cost of investment | 18,00,000 | 21,00,000 |
Expected life | 5 years | 5 years |
Annual Income (before Tax & Depreciation) | 5,00,000 | 6,00,000 |
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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