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Park Co. is considering an investment that requires immediate payment of $29,480 and provides expected cash inflows of $9,100 annually for four years. Assume Park
Park Co. is considering an investment that requires immediate payment of $29,480 and provides expected cash inflows of $9,100 annually for four years. Assume Park Co. requires a 8% return on its investments.
1-a. What is the internal rate of return? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) 1-b. Based on its internal rate of return, should Park Co. make the investment?
! Required information (The following information applies to the questions displayed below.] Park Co. is considering an investment that requires immediate payment of $29,480 and provides expected cash inflows of $9,100 annually for four years. Assume Park Co. requires a 8% return on its investments. 1-a. What is the internal rate of return? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) 1-b. Based on its internal rate of return, should Park Co. make the investment? Complete this question by entering your answers in the tabs below. Required 1A Required 1B What is the internal rate of return? % Required 1A Required 1B ! Required information [The following information applies to the questions displayed below.) A company is considering investing in a new machine that requires a cash payment of $50,949 today. The machine will generate annual cash flows of $22,314 for the next three years. What is the internal rate of return if the company buys this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Amount Invested 0 Annual Net Cash Flow = Present Value Factor 0 Internal Rate of Return % Required information (The following information applies to the questions displayed below.] A company is considering investing in a new machine that requires a cash payment of $50,949 today. The machine will generate annual cash flows of $22,314 for the next three years. Assume the company uses an 10% discount rate. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) Chart Values are Based on: n = i = % Cash Flow Select Chart Amount PV Factor Present Value Annual cash flow = $ 0 Net present valueStep by Step Solution
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