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ment (20 points) Saved Help Save & Exit Submit Check my work Line tollowing information applies to the questions aisplayed below.) A company is investing
ment (20 points) Saved Help Save & Exit Submit Check my work Line tollowing information applies to the questions aisplayed below.) A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $125,374.60 today. The system is expected to generate net cash flows of $13,000 per year for the next 35 years The investment has zero salvage value. Compute the internal rate of return on this investment. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) T n Amount Invested nces Internal Rate of Retur Annual Net Cash Flow = Present Value Factor Assignment (20 points) 10 Saved Help Save & Exit Submit Check my work A machine can be purchased for $110,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied using a five-year life and a zero salvage value. 4 ints Net income Year 1 Year 2 $7,400 $18,400 Year 3 $43,000 Year 4 $27,700 Year 5 $73,600 Book Compute the machine's payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.) Net Income Depreciation Net Cash Flow Cumulative Cash Flow Het Print Year References 0 1 $ 7,400 2 18,400 3 43,000 4 27,700 5 73,600 $ (110,000) $ (110,000)
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