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A company is considering purchase of a piece of equipment that costs 23,000. Projected net annual cash flows over the project's life are: Year Net
A company is considering purchase of a piece of equipment that costs 23,000. Projected net annual cash flows over the project's life are: Year Net Cash Flows 4,000 7,000 15,000 10,000 (a) Calculate the payback period for the project. (3 marks) (b) Calculate the net present value for the project, assuming a cost of capital of 11%. (4 marks) (c) Determine the internal rate of return for the project
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