Salvage value of the trucks at termination of the contract $ 18000.00 The tru

Salvage value of the trucks at termination
of the contract $ 18000.00
The trucks will have a useful life of seven years. To raise money to assist in the purchase of the new trucks the company will sell several old fully depreciated
trucks for a total selling price of $16000. The company requires a 16% after-tax return on all equipment purchases. The tax rate is 30%. For tax purposes the
company computes depreciation deductions assuming zero salvage value and using straight-line depreciation on the full cost of the trucks ($350000). The new trucks
would be depreciated over the seven year life. Compute the net present value of this investment opportunity._______
Compute the internal rate of return of this investment opportunity. __________%