Erin Burke is the ceo of ksu enterprises. He is considering the acquisition of a...
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Accounting
Erin Burke is the ceo of ksu enterprises. He is considering the acquisition of a new piece by a equipment with a cost of $50,000 plus $2,000 for installation. His analysis suggests that the equipment will reduce production costs by $13,717 per year for the next 5 years. KSU enterprise requires 12% minimum return.
Question 1: calculate the time adjusted (internal rate) of return.
Question 2: should ksu accept the proposed investment? Why or why not?
Question 3: would the NPV for the equipment be greater than zero or less than zero? Answering this question should not require any calculation.
please show all work/calculations/app inputs
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