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is this a good investment? Disc CF RB DCE $50,000.00 $50,000.00 $9,090.91 $40.909.09 $12,398 69 $28,51240 $15.026.30 $13,486 10 $17,07534 $3,589 24 $12 418 43

is this a good investment?
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Disc CF RB DCE $50,000.00 $50,000.00 $9,090.91 $40.909.09 $12,398 69 $28,51240 $15.026.30 $13,486 10 $17,07534 $3,589 24 $12 418 43 $16,007 66 Disc PB NA NA NA NA 3.79 429 Homework Assignment 3 4 WACC 10.00% Year Cash Flow Rem Bal S Payback 0350,000.00 6 Payback $50,000.00 NA 3.20 1 7 Discounted Payback $10,000 00 $40,000.00 NA 3.79 2 $15,000.00 $25,000.00 NA 8 IRR 20 33% 3 $20,000.00 9 MRR $5,000.00 NA 16 28% 4 $25,000.00 $20,000.00 320 10 NPV $16.007 66 5 $20,000.00 $40,000.00 500 11 12 13 14 Data 15 Upstate Manufacturing is considering the purchase of a machine for $50,000 The machine will allow 16 Upstate to save the following amounts over the next 5 years 17 Year 1 $10,000.00 18 2 $15,000.00 19 3 $20,000 00 20 4 $25,000.00 221 5 $20,000 00 22 Their WACC IS 10% Fill in the table above to do your analysis 21 The template we did in class and was included in the email that came with 24 this homework assignment has the formulas needed to do the analysis 23 Alter coming up with the Payback Discounted Payback, IRR MRR and 20 NPV above, state whether this is a good investment and why of why not 22 Just use your own words to explain why this is or isn't a good investment 20 A few words is all that your need, something like this is a good investment 29 because 0 Let me know if you have any questions You can email me at ipambotandersonuwversity edu 31 You can posts in Canvas or email it back to me, whichever is easier wat wil bedoe by midnight Nov 2

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