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CAPITAL BUDGETING ANALYSIS The management of DUPONT INTERNATIONALis considering the purchase of a new machine costing $405,000. The company's desired rate of return is 6%.

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CAPITAL BUDGETING ANALYSIS The management of DUPONT INTERNATIONALis considering the purchase of a new machine costing $405,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability in this situation: 1 Income from Net Cash Year Operations Flow $18,000 $93,000 2 18,000 93,000 3 18,000 93,000 4 18,000 93,000 5 18,000 93,000 Calculate the cash payback period for this investment. a. b. What is the average rate of return for this investment? 6 UNIDAYS LINHDAVS member TS-21 ADA 5,387 UN sty 29 c. Calculate the net present value for this investment. d. What is the present value index for this investment? e. What should the investment in the project be for the internal rate of return to be 6%. UNIDAYS LINHD AVC mambo DNA. ADA tv 5.387 UN

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