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need help finding the NPV , IRR , Payback , and if the project should be done or not Information for Questions 12-15 Alpha Mega
need help finding the NPV , IRR , Payback , and if the project should be done or not
Information for Questions 12-15 Alpha Mega inc. is thinking about investing in a new piece of equipment at a total cost of $237,000. The project will last 5 years at which time the equipment will be worthless. Their financial analyst has determined the following positive net income will result from this investment (NOTE: THIS IS NOT CASHI). Alpha Mega Inc uses a WACC of 6.5% to evaluate projects of this nature. NOTE: Problems 12-15 are based on very similar questions. HOWEVER, the NUMBERS for the problem may be different based on what version is randomly selected from Canvas. Do not assume the numbers stay the same. Question 12 2 pts What is the NPV for this project? NPV = % (round to x.xx) Net income over vears 1-5. $90,358.32 $90,612.50 $91.028.06 591.443.63 590.196.93 What is the IRR for this project? IRR = % (round to x.xx ) Do not assume the same numbers as the last question Net income over vears 1-5. 19.68% 19.16% 19.63% 19.51% 19.57% What is the payback period for this project? Payback = years rounded to (4) xxxx Do not assume the same numbers as the last questions Net income over years 1-5. 3.1074 Years 3.1001 Years 3.1060 Years 3.1110 Years 3.1037 Years Regardless of the difficrent number sets presented in problems 1215, all numbers were relatively No, PRIMARILY because the IRR is less than the required reated of return Yes, PRIMARILY because the payback period is less than the required term Step by Step Solution
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