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Basic Concepts 1 Roberts Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay required
Basic Concepts 1 Roberts Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay required is $2,400,000 The equipment is expected to last five years and will have no salvage value. The expected cash flows associated with the project are as follows: Year Cash Revenues Cash Expenses $2.980,000 $2,260,000 2. 2,980,000 2,260.000 3 2,980,000 2,260,000 2,980,000 2.260,000 5 2.980,000 2.260,000 4 The present value tables provided in Exhibit 1901 and Exhibit 190.2 must be used to solve the following problems Required: 1. Compute the project's payback period. If required, round your answer to the decimal places years 2. Compute the project's accounting rate of return. Enter your answer as a whole percentage value (for example, 10% should be entered as "16" in the answer bok). 3. Compute the project's not present value, assuming a required rate of return of 10 percent when required, round your answer to the nearest doltak 4. Compute the project's internal rate of return. Enter your answers as whole percentage values. Between and
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