question 1:

A company is considering buying a machine that would give a net cost savings of $70,000 per year for 10 years. The cost of the machine is $325,000. The company weighted average cost of capital is 12%. What is the net present value of buying machine?

question 2:

for the above, what is the profitability index for the machine?

question 3:

for the above, what is the difference between the IRR and the ARR? assume there is no depreciation and the cost is given as the average cost.