A company is considering a new machine that will generate cash inflow in the first year of

Rp. 116,800,000, the second year of Rp. 119,500,000, the third year of Rp. 98,800,000 and the fourth year of Rp. 90,000,000. This machine produces an IRR value of 12.5% and the machine is depreciated for 4 years using the straight-line method. 30% corporate tax and an average book value of IDR 168,000,000. The applicable return is 10% and the company's accounting average return is the IRR project. Make project decisions based on: Profitability Index, Payback Period and Accounting average return. (Cash inflow = EBIT - Taxes + Depreciation)

A company is considering a new machine that will generate cash inflow in the first year of Rp. 116,800,000, the second year of Rp. 119,500,000, the third year of Rp. 98,800,000 and the fourth year of Rp. 90,000,000. This machine produces an IRR value of 12.5% and the machine is depreciated for 4 years using the straight-line method. 30% corporate tax and an average book value of IDR 168,000,000. The applicable return is 10% and the company's accounting average return is the IRR project. Make project decisions based on: Profitability Index, Payback Period and Accounting average return.(Cash inflow = EBIT - Taxes + Depreciation)