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PQR Co. is considering a machinery upgrade with: Initial cost: $500,000 Net annual cash inflows: Year 1: $100,000 Year 2: $105,000 Year 3: $110,000 Year
PQR Co. is considering a machinery upgrade with:- Initial cost: $500,000
- Net annual cash inflows:
- Year 1: $100,000
- Year 2: $105,000
- Year 3: $110,000
- Year 4: $115,000
- Year 5: $120,000
- Year 1: $100,000
- Year 2: $105,000
- Year 3: $110,000
- Year 4: $115,000
- Year 5: $120,000
Requirements:
- Determine the NPV at an 8% discount rate.
- Calculate the payback period.
- Find the IRR.
- Assess the ARR.
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Managerial accounting
Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin
1st edition
978-0471467854
