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A new machine will cost $200,000 and generate after-tax cash inflows of $70,000 for four (4) years. Calculate the NPV, IRR, Profitability Index and Payback
A new machine will cost $200,000 and generate after-tax cash inflows of $70,000 for four (4) years. Calculate the NPV, IRR, Profitability Index and Payback Period for this project, given a 12% opportunity cost of capital. Tell me whether you'd accept or reject this project using each of these 4 methods. Support your decision using each method
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