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A widget machine will cost $ 2 5 0 , 0 0 0 . The anticipated increase in revenue will be $ 1 1 9

A widget machine will cost $250,000. The anticipated increase in revenue will be $119,000/year for 5-years. Annual expenses will be $20,000/year for 5-years. The depreciable life is estimated to be 5-years and the salvage value will equal $40,000. Additional inventory necessary to run the machine will be $10,000. Initial training expenses are $20,000. Tax rate equals 40%. Find the NPV@10%. Find the IRR. Find the discounted payback and convert this into a percentage.

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