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can you please provide formulas thank you. M3 PRACTICE PROBLEMS Your boss has told you to evaluate the cash flows for Machine 1 Machine 2

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can you please provide formulas thank you.

M3 PRACTICE PROBLEMS Your boss has told you to evaluate the cash flows for Machine 1 Machine 2 Machine 1 and Machine 2 using the payback period 0 (2,400,000) (2,200,000) method. Which machine are you going to recommend? 700,000 700,000 Justify your answer. 2 800,000 600,000 900.000 500,000 4 800,000 400,000 700,000 700,000 Your fimm is considering a project with the cash flows Year Cash flow shown in the chart below. The relevant discount rate is 6.00%. 0 (1,390,000) Find the net present value of this investment. Should your firm 1 235,000 invest? Justify your answer. 2 236,000 3 336.000 565,000 445,000 Your boss tells you that the firm is considering an investment that Year | Cash flow requires it to lay out $545,000 in cash, and has the cash inflows shown in 1 170,234 the table below. Your firm's cost of capital is 5.5%. Find the internal rate 2 150,225 return and determine whether you should tell your boss to invest or not. 149,468 Justify your answer. 131 287

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