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I need help filling in the cash flow amounts for the time value of money. The background is stated in the gray box above, and
I need help filling in the cash flow amounts for the time value of money. The background is stated in the gray box above, and the yellow boxes need to be answered
D E 1 AG 211 Ch14 (TVM Case Study Discount rate Desired Rate of Return 0.00% Background: Company is considering new Equipment that will cost 525.000 quipment will increase capacity and increase contribution margin $5,000 per year through increased sales (quipment has a 6-year life and a $2.000 salvage value. Company has a 12x desired return on Investment Investment (Not discounted Year 1 Year 2 Year 3 Year 4 Years Year Year Year Year Year 10 $ $ 10000 1.0000 10000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 Anuwen 6 Actual Cash Flow 7 Factor Present Value of Cash Flow by Year 3 10 Present Value of future cash flows 11 tial try ti 12 Net Present Value 11 Internal Rate of Return 14 poject Profitability Indes 15 16 17 10 19 Question What is the net present value of the investment? Should the company purchase the equipment (Yes or Nol? NUMI DIV/01 Step by Step Solution
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