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Ch 24 Homework 0 Saved 13 7.72 points Refe re nces Quary Company is considering an investment in machinery with the following information The company's
Ch 24 Homework 0 Saved 13 7.72 points Refe re nces Quary Company is considering an investment in machinery with the following information The company's required rate of return is 10%. (PV of $1, FV of $1. PVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment $ 204,000 Materials, labor, and overhead (except depreciation) $ 46,000 Useful life 8 year: DepreciationMachinery 21,000 Salvage value $ 20,100 Selling, general, and administrative expenses 6,000 Expected sales per year 10,000 units Selling Price per unit 5 12 a. Compute the investment's net present value b. Using the answer from part a, is the investment's internal rate of return higher or lower than 10%? Complete this question by entering your answers in the tabs below. Required A Required B Compute the investment's net present value. (Negative net present values should be indicated with a minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar.) \"I \"I -H lH Required B > Ch 24 Homework 0 Saved 12 OptiLux is considering investing in an automated manufacturing system. The system requires an initial investment of $4 million, has a 20-year life, and will have zero salvage value. If the system is implemented, the company will save $500,000 per year in direct labor costs. The company requires a 10% return from its investments. (PV of $1, FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) 7.69 from the tables provided.) points 3. Compute the proposed investment's net present value. b. Using the answer from part a. is the investment's internal rate of return higher or lower than 10%? Complete this question by entering your answers in the tabs below. E! Prim Required A Required B l Compute the proposed investment's net present value. Refe re nces Required B >
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