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( Click the icon to view the savings in cash operating costs. ) Eastern Cola uses a required rate of return of 1 8 %
Click the icon to view the savings in cash operating costs.
Eastern Cola uses a required rate of return of in its capital budgeting decisions. Ignore income taxes in your analysis. Assume all cash flows occur at yearend except for initial investment amounts.
Present Value of $ table
Present Value of Annuity of $ table
Future Value of $ table
Future Value of Annuity of $ table
Read the requirements.
Net present value. Use factor amounts rounded to three decimal places. Round your answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.
The net present value is Data table
Requirements
tableYearAmount,,Year $Year Year Year Total
Calculate the following for the special purpose bottling machine:
Net present value
Payback period
Discounted payback period
Internal rate of return using the interpolation method
Accrual accounting rate of return based on net initial investment Assume straightline depreciation. Use the average annual savings in cash operating costs when computing the numerator of the accrual accounting rate of return.
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