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I need help to solve this Problem; Diamond Company is considering purchasing a machinethat would cost $756,000 and have a useful life of 8 years.
I need help to solve this Problem; Diamond Company is considering purchasing a machinethat would cost $756,000 and have a useful life of 8 years. The machine would reduce cash operating costs by $ 132,632 per year. The machine would have a salvage value of $151,200 at the end of the project. Compute; a.) Net present Value, b) Internal rate of Return c)Profitability Index d.)Payback period e.)Simple rate of return f.)Should the Company purchase the machine? why or why not?
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