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Jo, a private tutor, is considering buying a new power lawn mower. It would save her...

Jo, a private tutor, is considering buying a new power lawn mower. It would save her 30 minutes of work a week, which she would use to see another client. Her fee is $16 per hour and she works 50 weeks a year. The lawn mower would cost $1,400. What would her IRR be if the mower was expected to last 8 years? Express your figures on an annual basis and assume that her required rate of return is 9 percent.

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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

Home nert Page Layout Formulas Data Review View dd-Ins s Cut ta copy. Σ AutoSum ー E ゴWrap Text B l u. ,_a. ars-函Merge & Center, $, % , 弼,8 C Conditional Format CeInsert Delete Format Formatting as Table Styles2 Clear Sort &Find & Format Painter Clipboard Alignment Number Cells Edting 81 82 83 84 85 86 87 SAVINGS PER YEAR0.50 HOURS X $16 PER HOUR X 50 WEEKS A YEAR SAVINGS PER YEAR- SAVINGS VS COST OF LAWN MOWER 0 1400 400 89 400 91 92 93 94 95 96 97 98 400 400 IRR = 23.18% IRR(L86:L94) : 11 IRRnpv RATION PBP ARR ( external rate MIRR NPV İRR REPLACEMENT S HPR GMAM CEAC MACRS RATIOCASHBUDGET wacc BOND EPS EBIT REPLACEMENT STats

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