Question
Czick Company is considering an investment in a machine that costs $36,048 and would result in cash savings of $10,000 per year for 5 years.
Czick Company is considering an investment in a machine that costs $36,048 and would result in cash savings of $10,000 per year for 5 years. The companys cost of capital is 10%.
1. Compute the projects NPV at 10%, 12%, and 14%. 2. Compute the projects IRR. 3. Suppose the company uses the NPV model. Would it accept the project? Why or why not? 4. Suppose the company uses the IRR model. Would it accept the project? Why or why not?
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The Training And Development Audit
Authors: Rosemary Harrison
2nd Edition
0955970725, 978-0955970726
