Sufam Corp. is considering an investment in automated equipment for the manufacturing Process. The equipment will cost $250,000, have a useful life of six years, generate after-tax cash flows of $60,000, and have no salvage value at the end of six years. The company uses a discount rate of 15%.
Computer access recommended.
Required:
(1) Calculate the net present value of the automated equipment.
(2) Calculate the internal rate of return of the automated equipment, to the nearest tenth of a percent.

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The Answer of  Sufam Corp. is considering an investment in automated equipment for the manufacturing Process. The equipment will cost $250,000, have a useful life of six years, generate after-tax cash flows of $60,000, and have no salvage value at the end of six years. The company uses a discount rate of 15%.
Computer access recommended.
Required:
(1) Calculate the net present value of the automated equipment.
(2) Calculate the internal rate of return of the automated equipment, to the nearest tenth of a percent.