Question
a. Your company wants to invest $250,000 in a new machine. Cash flows that result are: Yr1: 50,000; Yr2: 121,000; Yr3: 86,000; Yr4: 100,000. Cost
a. Your company wants to invest $250,000 in a new machine. Cash flows that result are: Yr1: 50,000; Yr2: 121,000; Yr3: 86,000; Yr4: 100,000. Cost of capital is 14%. What is the NPV?
b. Calculate the NPV:
Investment amount: (8,250,000). Cash flows: Yr1: 2,500,000; Yr2: 3,500,000; Yr3: 4,500,000; Yr4: 5,500,000. Cost of capital: 24%
C. For the following, calculate the NPV:
Investment amount: (1,000,000). Cash flows: Yr1: 251,000; Yr2: 289,000; Yr3: 582,000; Yr4: 456,000. Cost of capital: 16%.
D. For the following cash flows, calculate the NPV:
Investment ($10,000); Yr1: 4,000; Yr2: 3,000; Yr3: 4,000; Yr4: 2,500. Cost of capital is 10%.
Please answer all parts.
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