find net present value and internal rate of return %

urrent Attempt in Progress Wildhorse Corporation is involved in the business of injection molding of plastics. It is considering the purchase of a new computer aided design and manufacturing machine for $431,000. The company believes that with this new machine it will improve productivity and increase quality, resulting in an increase in net annual cash flows of $104,830 for the next 6 years, Management requires a 10% rate of return on all new investments. Click here to view the factor table. Calculate the internal rate of return on this new machine. (Round answer to O decimal places, eg. 13%. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) 36 Internal rate of return Should the investment be accepted? The investment should be accepted Crane Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company's current truck (not the least of which is that it runs). The new truck would cost $55,440. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $8,400. At the end of 8 years, the company will sell the truck for an estimated $28,000. Traditionally the company has used a rule of thumb that a proposal should not be accepted unless it has a payback period that is less than 50% of the asset's estimated useful life Larry Newton, a new manager, has suggested that the company should not rely solely on the payback approach, but should also employ the net present value method when evaluating new projects. The company's cost of capital is 8%. Click here to view the faster table. (a) Compute the cash payback period and net present value of the proposed investment, if the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses es (45). Round answer for present value to decimal places, es. 125. Round answer for Payback period to 1 decimal place, es. 10.5. For calculation purposes, use 5 decimal places as displayed in the factor table provided.) 6.6 years Cash payback period 8067 $ Net present value