Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 4) a firm considers to buy a new 3d printer whose

4) A firm considers to buy a new 3D printer whose cost is $ 46...

70.2K

Verified Solution

Question

Finance

image

4) A firm considers to buy a new 3D printer whose cost is $ 46 100. The cost of 3D printer will be paid in 2022. The expected cash flows of this investment are as follows: 2023: $ 13200 2024: $ 13200 2025: $ 13 200 2026: $ 13 200 2027: $ 13 200 a) Find the Internal Rate of Return (IRR) of this project. b) Given that the current annual interest rate is 15% and the risk premium appropriate for this investment is 5%; should the firm accept or reject this investment. Note: If you do not have access to a sophisticated calculator or Excel which you need to provide a numerical answer; write the relevant formula for IRR. If your formula is correct; you receive full grade for question 4a. Write the decision criteria according to which we accept or reject an investment on basis of IRR (e.g write something like a>b specifying what a is and what b is) to get full credit for 4b in case you are unable to calculate the IRR

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

On January 1, 2020, Cullumber Corporation had $1,125,000 ofcommon stock outstanding that was issued...

Finance
1.2K views

An electric utility is considering a new power plant in northern Arizona. Power from the plant...

Biology
1.2K views

Interstitial fluid is O identical to blood in composition O the internal environment inside animal...

Physics
1.2K views

12. The volume knob on a radio varies the resistance on a line that goes...

Algebra
1.2K views

If a survey with a random sample of 2500 students is conducted is it possible...

Algebra
1.2K views

Divide using synthetic division 2x2 x 1 x 4 For the toolbar press ALT F10...

Accounting
1.2K views

19. Assume that the Hood River Juice Company applies factory overhead to its production departments...

Accounting
1.2K views

Metal Company budgeted $574,000 manufacturing direct wages, 4,000 direct labor hours, and had the following...

Accounting
1.2K views

processing equipment, the firm can purchase lower-grade raw material at reduced cost and upgrade it...

Accounting
1.2K views

help ...

Accounting
1.2K views

Our Skills RESEARCH CASE Jonas Tech Corporation recently acquired requests your help with the following...

Accounting
1.2K views

To emphasize auditor independence from management, publicly traded corporations are required to aHave the independent...