[Pay for Essay] – Internal Rate of Return

Carler Company is considering the purchase of an electric powered truck for moving materials in its

factory. The electric powered truck will cost $ 22,000.

The cost of capital for the truck is 12%. The useful life of the truck is 6 years. The net cash flows from the

electric truck will be $ 6,290 per year. The net income from the electric truck will be $ 2,400.

Using the attached template, compute the following





The company requires and Internal Rate of Return greater than 15% and a Return on Investment greater

than 19%. The Payback Period must be less than 3 years and The Net Present Value of the project must

be a positive number.

Using Word, summarize your decision.

Submit the spreadsheet and your decision using Word.

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