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Question 1 A company has the possibility of acquiring a machine that allows to reduce the cost of labor and energy. The machine costs 800.000
Question 1 A company has the possibility of acquiring a machine that allows to reduce the cost of labor and energy. The machine costs 800.000 euros and will have a residual value of 50.000 euros at the end of a useful life of five years. The annual revenues (cost reduction) that the machine will produce are: Annual Revenue (cost reduction) 200.000 230.000 250.000 275.000 280.000 Year 1 2 3 4 5 Discount rate: 12% CALCULATE NPV CALCULATE IRR INDICATE IF IT IS WORTH TO PURCHASE THE MACHINE Points: 30%
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