Where All Gifts Are Under $5
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.
One Response for "How do you do a capital budgeting analysis on cost savings?"
the idea is to know the present value of the cost savings, it is doen for a replacement decision so as to know what is the net inflow/outflow from the project,
this is all i could answer from ur question,
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