Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. a company is considering an investment project whi

A company is considering an investment project which involves the purchase of machinery. The project...

60.1K

Verified Solution

Question

Finance

A company is considering an investment project which involves the purchase of machinery. The project has a four year life at the end of which the machinery will be sold for 40,000. The project will result in the following cash flows: Initial investment 120,000 Year 1 cash inflow 35,000 Year 2 cash inflow 40,000 Year 3 cash inflow 55,000 Year 4 cash inflow 30,000 The companys policy is to depreciate machinery on a straight line basis over its estimated life. The company has a cost of capital of 10%.

The payback period for the proposed investment, to the nearest month, is?

The net present value of the proposed investment is?

The internal rate of return of the proposed investment is?

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

Finance
1.2K views

Marcel Thiessen purchased a home for $206,200 and obtained a 15-year, fixed-rate mortgage at 10% after...

Medical Sciences
1.2K views

Goblet cells

Psychology
1.2K views

Why is important to have posting guidance such as 1) avoiding duplicate thread titles, 2) creative...

Physics
1.2K views

Three waves producing displaceme same direction of same frequency and of amplitudes 10 m 4um...

Algebra
1.2K views

Give the function f x x 3x determine the average rate of change from x...

Accounting
1.2K views

4 tricky and challenging questions about( managerial accounting )- finding raw materials ( beg ,...

Accounting
1.2K views

As of January 2,2024, The Seeplus Company had the following items in its capital...

Accounting
1.2K views

Picture This Company manufactures 8.5"11 black plastic picture frames that it sells through an e-commerce...

Accounting
1.2K views

Margin=Segment margin/Sales asset turnover=sales/average assets return on investment =margin Asset turnover margin Asset turnover Roi...

Accounting
1.2K views

kropf inc has provided the following data concerning one of the products in its standard...

Accounting
1.2K views

Allegience Insurance Companys management is considering an advertising program that would require an initial expenditure...

Finance
1.2K views

Dividende Using the data in the table to the right, calculate the return for investing...