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1 Assume a piece of machinery costs $380,000 and would last for 8 years. At the end of 8 years, the salvage value would be
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Assume a piece of machinery costs $380,000 and would last for 8 years. At the end of 8 years, the salvage value would be $96,500. Annual cost savings for the machinery would be $73,000. Assume a minimum pretax return of 15% is required for all machinery purchases. Compute the NPV and IRR for the machinery (ignore income taxes.) Provide the amounts you input in Excel and your calculated net present value (if a variable is not used in the calculation, Input a zero (0). Omit the "$" and "%" signs in your response.) Round your answer to the nearest dollar and use a minus sign for negative numbers Excel Input Rate Nper PMT PV FV Net Present Value (NPV) Required: Provide the amounts you input in Excel and your calculated internal rate of retur (If a variable is not used in the calculation, input a zero (o). Omit the "$" and "" signs in your response.) Round your answer to one decimal place and use a minus sign for negative numbers Excel Input: Net Present Value (NPV) Required: Provide the amounts you input in Excel and your calculated internal rate of return (If a variable is not used in the calculation, input a zero (O). Omit the "s" and way" signs in your response.) Round your answer to one decimal place and use a minus sign for negative numbers. Excel input: Rate Nper PMT $ PV $ FV Internal Rate of Return (RR) Step by Step Solution
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