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PLEASE SHOW ME THE CALCULATION IN FORMULA !!!! NOT IN EXCEL SHEET The Green Goddess Company is considering the purchase of a new machine that
PLEASE SHOW ME THE CALCULATION IN FORMULA !!!! NOT IN EXCEL SHEET
The Green Goddess Company is considering the purchase of a new machine that would increase the speed of manufacturing tires and save money. The net cost of the new machine is $45,000. The annual cash flows have the following projections. Year Cash Flow 1 $15,000 20,000 2 3 25,000 4 10,000 5 5,000 a. If the cost of capital is 10 percent, what is the NPV? (Use a Financial calculator to arrive at the answers. Round the intermediate and final answer to the nearest whole dollar.) NPV $13882.90 b. What is the IRR? (Round the final answer to 2 decimal places.) IRR 22.99 % c. Should the project be accepted? Yes Q o
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