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can someone help me with this practice question? Assume a piece of machinery costs $380,000 and would last for 10 years. At the end of
can someone help me with this practice question?
Assume a piece of machinery costs $380,000 and would last for 10 years. At the end of 10 years, the salvage value would be $96,500. Annual cost savings for the machinery would be $91.000. Assume a minimum pretax return of 13% is required for all machinery purchases. Compute the NPV and IRR for the machinery. (Ignore income taxes.) Provide the amounts you input in Excel and your calculated net present value. (If a variable is not used in the calculation, input a zero (O). Omit the "S" and "%" signs in your response.) Round your answer to the nearest dollar and use a minus sign for negative numbers. Excel input: Rate Nper PMT PV $ FV Net Present Value (NPV) Required: Required: Provide the amounts you inputin Excel and your calculated internal rate of return. (If a variable is not used in the calculation, input a zero (). Omit the "S" and "%" signs in your response.) Round your answer to one decimal place and use a minus sign for negative numbers. Excel Input: Rate Nper PMT $ PV FV Internal Rate of Return (IRR) Step by Step Solution
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