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Fir Ti estion 21 Tyet wered rked out of 00 Flag stion Moonbeam Company is considering purchasing a new machine for $80,000. The new facility

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Fir Ti estion 21 Tyet wered rked out of 00 Flag stion Moonbeam Company is considering purchasing a new machine for $80,000. The new facility will generate annual net cash inflows of $20,000 for six years. At the end of the six years the machine will have no residual value. The company uses straight-line depreciation, and its stockholders demand an annual return of 12% on investments of this nature. Present value of an ordinary annuity of $1: (10 Points) 12% 13% 14% 15% 1 0.893 0.885 0.877 0.87 2 1.69 1.668 1.647 1.626 3 2.402 2.361 2.322 2.283 4 3.037 2.974 2.914 2.855 5 3.605 3.517 3.433 3.352 6 4.111 3.998 3.889 3.784 7 4.564 4.423 4.288 4.160 Requirements: 1. Compute the payback period to two decimal places. (2 points) 2. Compute the ARR to two decimal places. (2 Points) 3. Compute the NPV to the nearest whole dirham. (2 points) 4. Compute the IRR range within one percent. (2 Points) 5. Compute the profitability index of this investment (2 Points)

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