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Please answer ASAP ): You own an ice rink and are considering investing in a new high speed Zamboni (ice resurfacing machine). This would require
Please answer ASAP ):
You own an ice rink and are considering investing in a new high speed Zamboni (ice resurfacing machine). This would require an investment of $36,000 (the cost!). You are projecting that with the new Zamboni, additional related annual net cash inflows (with more available ice time for hockey leagues, skating parties, etc.) would be $10,000 annually. The Zamboni is expected to have a 6 year useful life with no salvage/residual value. Your desired discount rate to use where applicable (present value of annuity table is further below) is as follows: Answer each of the following: (\% answers can be rounded to nearest whole \%), must show calculations for any partial or full credit: * Use the methods from this course; no credit for answers that appear to be derived from Excel or app "shortcuts". A) What is the expected Simple (accounting) Rate of Return? B) What is the expected Payback period? C) What is the expected Net Present Value at your desired discount rate? D) What is the_expected Internal Rate of Return? Present value interest factor of an (ordinary) annuity of $1Step by Step Solution
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