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Gravina Company is planning to spend $ 7 , 0 0 0 for a machine that it will depreciate on a straight - line basis
Gravina Company is planning to spend $ for a machine that it will depreciate on a straightline basis over years with no salvage value. The machine will generate additional cash revenues of $ a year. Gravina will incur no additional costs except for depreciation. Its income tax rate is For parts and of this question use Table and Table
Required:
What is the payback period of the proposed investment under the assumption that the cash inflows occur evenly throughout the year? Round your answer to decimal places.
What is the accounting book rate of return ARR based on the initial investment outlay? Round your answer to decimal place.
What is the maximum amount that Gravina Company should invest if it desires to earn an internal rate of return IRR of Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.
What is the minimum annual pretax cash revenue required for the project to earn a internal rate of return? Round your intermediate calculations and final answer to the nearest whole dollar amount.
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