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An industrial machine costing S14,000 will produce net cash savings of $5,000 per year. The machine has a five-year useful life but must be returned
An industrial machine costing S14,000 will produce net cash savings of $5,000 per year. The machine has a five-year useful life but must be returned to the factory for major repairs after three years of operation. These repairs cost $5,000. The company's MARR IS 10% per year. Please calculate to 4 decimal places. Format: 0.0000 a What IRR will be earned on the purchase of this machine? Analyze the sensitivity of IRR to : $2,000 changes in the repair cost b. The IRR at a repair cost of $7000 is: U. c. The IRR at a repair cost of $3000 is: d. At what repair cost will the machine be no longer viable? (Round your answer to the nearest whole dollar. Format: 0000 No commas.)
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