Please Calculate the Following using the Table Given.Beta Internal Rate of Return (IRR). Gamma’s Internal Rate of Return (IRR). The incremental Internal Rate of Return (ΔIRR) between the Alpha and Gamma harvesters (using Excel’s IRR function). A cash crop specialist requires more significant harvesting capacity dueto the purchase of an additional 900 acres of farmland.The parameter values of the three harvesters under consideration areprovided below.Parameters1. Initial Cost ($)Alpha300,000Beta350,000200,000 atΕΟΥ1increasing by$500 annuallythereafter by$500 untilEOY5; 206,000at EOY6increasingannuallythereafter by1%113,000 atGamma390,000205,000 atΕΟΥ1235,000 annuallyfrom EOY1 toincreasingannuallythereafter by$5002. Revenues ($)EOY5110,000 atΕΟΥ1increasingannuallythereafter by2%115,000 at EOY1increasingannuallythereafter by 2%ΕΟΥ13. Operating costs($)increasingannuallythereafter by4%4. End-of-lifesalvage value ($)5. Useful life10,000-10,000105(years)• All parameter values are fictitious.• EOY = End-of-yearIndustry standard for harvesters = 4 yearsMARR = 10%

Internal ROR is discounts all subsequent inflows equal to initial outlay related to investment…

Please Calculate the Following using the Table Given. Beta Internal Rate of Return (IRR). Gamma’s Internal Rate of Return (IRR). The incremental Internal Rate of Return (ΔIRR) between the Alpha and Gamma harvesters (using Excel’s IRR function).

Please Calculate the Following using the Table Given. Beta Internal Rate of Return (IRR). Gamma’s Internal Rate of Return (IRR). The incremental Internal Rate of Return (ΔIRR) between the Alpha and Gamma harvesters (using Excel’s IRR function).

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 10P: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year...

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