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Information for questions 40-43: Carry-Along is debating whether or not to invest in new equipment to manufacture a line of highquality luggage. The new equipment

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Information for questions 40-43: Carry-Along is debating whether or not to invest in new equipment to manufacture a line of highquality luggage. The new equipment would cost $1,000,000, with an estimated four-year life and a $15,000 salvage value. The estimated annual operating results with the new equipment are as follows: All revenue from the new luggage line and all expenses (except depreciation) will be received or paid in cash in the same period as recognized for accounting purposes. Using a 9% discount rate, you are to compute the following for the investment in the new equipment to produce the new luggage line: Net Present Value: Information for questions 4043 : Carry-Along is debating whether or not to invest in new equipment to manufacture a line of highquality luggage. The new equipment would cost $1,000,000, with an estimated four-year life and a $15,000 salvage value. The estimated annual operating results with the new equipment are as follows: All revenue from the new luggage line and all expenses (except depreciation) will be received or paid in cash in the same period as recognized for accounting purposes. Using a 9% discount rate, you are to compute the following for the investment in the new equipment to produce the new luggage line: Internal Rate of Return (Enter as percentage. 15\% would be entered as 15) Information for questions 40-43: Carry-Along is debating whether or not to invest in new equipment to manufacture a line of highquality luggage. The new equipment would cost $1,000,000, with an estimated four-year life and a $15,000 salvage value. The estimated annual operating results with the new equipment are as follows: All revenue from the new luggage line and all expenses (except depreciation) will be received or paid in cash in the same period as recognized for accounting purposes. Using a 9% discount rate; you are to compute the following for the investment in the new equipment to produce the new luggage line: Payback Period years. Information for questions 40-43: Carry-Along is debating whether or not to invest in new equipment to manufacture a line of highquality luggage. The new equipment would cost $1,000,000, with an estimated four-year life and a $15,000 salvage value. The estimated annual operating results with the new equipment are as follows: All revenue from the new luggage line and all expenses (except depreciation) will be received or paid in cash in the same period as recognized for accounting purposes. Does this investment pass the screening stage of capital budgeting

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