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(Please type answer). Question: Is the internal rate of return more or less than 10%? One word (more or less). What is the profitability index?
(Please type answer).
Question:
Is the internal rate of return more or less than 10%? One word (more or less).
What is the profitability index? (go two places past decimal point)
Capital Budgeting - No taxes. Sam's Structures desires to buy a new crane and accessories to help move and install modular buildings. The machine sells for $75,000 and requires working capital of $10,000. Its estimated useful life is six years and it will have a salvage value of $17,000. Recovery of working capital will be $10,000 at the end of its useful life. Annual cash savings from the purchase of the machine will be $30,000. The company uses straight line depreciation but does not pay taxes. They use discount rate of 10%. An acceptable payback period is four years. Do not use commas or dollar signs. Round to the nearest dollar
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