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Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return Follow the format shown in Exhibit 1 2 B . 1 and Exhibit
Payback, Accounting Rate of Return, Net Present Value, Internal Rate of Return
Follow the format shown in Exhibit B and Exhibit B as you complete the requirement below.
Woodard Company wants to buy a numerically controlled NC machine to be used in producing specially machined parts for manufacturers of trenching machines. The outlay required is $ The NC equipment will last five years with no expected salvage value. The expected aftertax cash flows associated with the project follow:
Year Cash Revenues Cash Expenses
$ $
Required:
Compute the investment's Net Present Value, assuming a required rate of return of percent. Round present value calculations and your final answer to the nearest dollar.
NPV fill in the blank of $
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