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Please answer all three questions, thank you in advance!! Pickwick Inc. is considering investing $100,000 in a new combine harvester machine. The company's hurdle rate
Please answer all three questions, thank you in advance!!
Pickwick Inc. is considering investing $100,000 in a new combine harvester machine. The company's hurdle rate is 8%. The machine is expected to generate the following cash flows over the machine's 5-year useful life: Compute the net present value (NPV) of this investment. Dimas Deliveries Inc. is considering investing $60,000 in a new delivery truck. The truck has no salvage value. The truck is expected to generate an annual net cash flow of $18,000 over its 5-year useful life. The company's hurdle rate for investment is 12%. Compute the net present value (NPV) of this investment opportunity. Tobert Inc. is considering the purchase of a new piece of equipment. The cost of the equipment would be $53,632 and the company expects the equipment would generate annual cash flows of $16,000 for the next five years. The company's hurdle rate is 12%. Compute the internal rate of return (IRR) on this investmentStep by Step Solution
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