How do you do a capital budgeting analysis on cost savings?
alloutoflovesolostwithoutyou87 asked:
I’m meant to do a capital budgeting analysis on the cost savings of a project and state the NPV and IRR of the project but I don’t understand what they’re asking as their yearly depriciation tax savings differ from year to year and the 5th year was split into 2 half years.How do you calculate the NPV and IRR of such a project?Thank you so much in advance.
Cleora Fedde
I’m meant to do a capital budgeting analysis on the cost savings of a project and state the NPV and IRR of the project but I don’t understand what they’re asking as their yearly depriciation tax savings differ from year to year and the 5th year was split into 2 half years.How do you calculate the NPV and IRR of such a project?Thank you so much in advance.
Cleora Fedde
The project this is to know what is doen for replacement decision so as to know what is the present value of the net inflowoutflow from.
For replacement decision so as to know the net inflowoutflow from ur question.