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a. calculate the net present value of the investment b.calculate tbe present value ratio of the investment c. what is the internal rate of return

a. calculate the net present value of the investment
b.calculate tbe present value ratio of the investment
c. what is the internal rate of return of this investment , relative to the cost of capital
D. Calculate the payback perjod of the investment.
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image text in transcribed
16 Homework Help Save & Exit Submit Check my work Cowboy Recording Studio is considering the investment of $138.900 in a new recording eguipment. It is estimated that the new equipment will generate additional cash flow of $20,500 per year for each year of its 7 year life and will have a salvage value of $14,500 at the end of its life. Cowboys's financial managers estimate that the firm's cost of capital is By Use Table 6-4 and Table 6-5. (Use appropriate factor(s) from the tables provided. Round the PV factors to 4 decimals.) Required: a. Calculate the net present value of the investment b. Calculate the present value ratio of the investment c. What is the internal rate of return of this investment, relative to the cost of capital? d. Calculate the payback period of the investment Complete this question by entering your answers in the tabs below. Required A Required B Required Required Calculate the net present value of the investment. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.) Natprent value Required: a. Calculate the net present value of the investment. b. Calculate the present value ratio of the investment, c. What is the internal rate of return of this investment, relative to the cost of capital? d. Calculate the payback period of the investment. Book Print ences Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Calculate the present' value ratio of the investment (Round your answer to 2 decimal places.) Present value ratio Prev 1 of 1 III Next w 20

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