Question
Builtrite has estimated their cost of capital is 14% and they are considering the purchase of a machine with the following capital budget: Initial Investment
Builtrite has estimated their cost of capital is 14% and they are considering the purchase of a machine with the following capital budget:
| Initial Investment | $62,000 |
| RATFCF Year 1 | $22,000 |
| RATFCF Year 2 | $30,000 |
| RATFCF Year 3 | $38,000 |
What is the machine's net present value?
What is Profitability Index of this machine?
What is the Initial Rate of Return for this machine?
I need these answers ASAP!! Please hep!
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Principles Of Corporate Finance
Authors: Lawrence J. Gitman, Sean M. Hennessey
2nd Canadian Edition
0321452933, 978-0321452931
