Question
a) An initial investment of $8,320,000 on plant and machinery is expected to generate net cash flows of $3,410,000, $4,070,000, $5,824,000 and $2,065,000 at the
a) An initial investment of $8,320,000 on plant and machinery is expected to generate net cash flows of $3,410,000, $4,070,000, $5,824,000 and $2,065,000 at the end of first, second, third and fourth year respectively. At the end of the fourth year, the machinery will be sold for $900,000. Calculate the net present value of the investment if the discount rate is 18%?. b) Suppose you deposit $22.000 in an account today that pays 6% interest, compounded annually. How long does it take before the balance in your account is $76.000? ... #Note please No plagiarisim!
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