Course Project Part II Busn379 AirJet Best Parts Financial Analysis A financial decision for the purchase of new equipment will be based on the projects IRR and NVP. Below I have included the IRR and NPV to help assist in the financial decisions for the project. Capital budgeting for a new machine 1.) The IRR is 22.38% 2.) The NVP is $450,867.00 NVP formula is as followed: Year 1 = 1100000/(1+0.15)^1 = 1100000/1.15 = 956521.74 Year 2 = 1450000/(1+0.15)^2 = 1450000/1
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