Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help with the attached questions Can I get answers within an hour thank you 39 - The ________________ is the discount rate that equates
please help with the attached questions
Can I get answers within an hour
thank you
39 - The ________________ is the discount rate that equates the present value of a project's cash inflows with the present value of the project's outflows. Cost of capital Internal rate of return Present value index Time adjusted accounting rate of return 41 Urbana Corporation is considering the purchase of a new machine costing $172,000. The machine would generate net cash inflows of $46,428 per year for 5 years. At the end of 5 years, the machine would have no salvage value. Urbana's cost of capital is 14 percent. Urbana uses straight-line depreciation. Using a spreadsheet or financial calculator, determine the net present value for the investment. The proposal's net present value is (rounded to the nearest dollar): $ (12,609 ) $ 13,374 $ 13,712 $159,39 1 40 This capital budgeting model gives explicit consideration to investment size. Accounting rate of return Internal rate of return Net present value Payback period 39 The ________________ is the discount rate that equates the present value of a project's cash inflows with the present value of the project's outflows. Cost of capital Internal rate of return Present value index Time adjusted accounting rate of returnStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started