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Delicate Pieces inc. is considering the purchase of a special blow-molding machine that would cost $42,569 and would have a useful life of 5
Delicate Pieces inc. is considering the purchase of a special blow-molding machine that would cost $42,569 and would have a useful life of 5 years. The machine would generate $12.400 of net annual cash inflows per year for each of the 5 years of its life. The intemal rate of return on the machine would be closest to Present Value of $1 Periods 6% 8% 10% 12% 14% 3 0.840 0.794 0.751 0.712 0.675 4 0.782 0735 0.683 0636 0592 5 0.747 0681 0.621 0.567 0.519 6 0.705 0.630 0.564 0.507 0.450 7 0.665 0.583 0513 0.452 0.400 0.627 0.540 0.467 0404 0.351 D 0.592 0.500 0.424 0.361 0.308 10 0550 0.463 0.306 0.322 0.270 Present Value of Annuity of $1 Periods 0% 8% 10% 12% 14% 3 2673 2.577 2.487 2.402 2.322 4 3.465 3.312 3.170 3.037 2.914 5 4.212 3.993 3.791 3.605 3.433 6 4.917 4.623 4.355 4.111 3.889 7 5.582 5.200 4.868 4.564 4.288 8 6.210 5.747 5.335 4968 4.639 9 6.802 6247 5.759 5328 4946 10 7.360 6.710 6.145 5650 5.216 OA 6% OB 14% OC. 10% OD. 12%
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