Question
I need help with my homework. Thank you in advance. 1. Given the following information, calculate the NPV: Purchase price is $62,170, setup is $6,781;
I need help with my homework. Thank you in advance.
1. Given the following information, calculate the NPV: Purchase price is $62,170, setup is $6,781; cash flows are $19,831, $21,058, ($13,704), $34,655, $50,146; and the required rate of return is 7%.
2. Calculate the payback period in years for the following investment: A machine costs $100,000 with installation costs of $15,000. Cash inflows are expected to be 35,088 per year for the next 7 years. (Answer in years, rounded to 2 decimal places)
3. You have purchased a machine for $199,932 and are depreciating it using a five-year MACRS schedule (20%, 32%, 19.2%, 11.52%, 11.52%. 5.76%). You are in a 29% tax bracket and will be able to sell the machine for $50,161 at the end of year four. Calculate your net incremental cash flow from the sale of this machine. (Round answer to nearest dollar)
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