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Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture

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Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $388,320 and to have a six-year life and no salvage value. The equipment is expected to generate income of $15,839 and net cash flow of $76,506 in each year of its six-year life. Santana requires an 6% return on all investments. (PV of \$1, EV of \$1, PVA of \$1, and FVA of \$1) (Use appropriate factor(s) from the tables provided.) (Negative net present values should be indicated with a minus sign. Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole number.) Required: 1-a. Compute the payback period for this equipment. 1-b. Compute the net present value for this equipment 1-c. Compute internal rate of return for this equipment. 2. If Santana requires investments to have payback periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 6% internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Compute the net present value for this equipment. (Negative values must be entered as a negative number.) Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture the. The equipment is expected to cost $388,320 and to have a six-year life and no salvage value. The equipment is expected to generate income of $15,839 and net cash flow of $76,506 in each year of its six-year life. Santana requires. an 6% return on all investments, (PV or \$1. FV of \$1, PVA of \$1, and FVA of \$1) (Use appropriate factor(s) from the tables provided.) (Negative net present values should be indicated with a minus sign. Do not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole number.) Required: 1-a. Compute the payback period for this equipment. 1.b. Compute the net present value for this equipment. 1.c. Compute internal rate of return for this equipment. 2. If Santana requires investments to have payback petiods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 6% internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Compute internal rate of return for this equipment. Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line. The equipment is expected to cost $388,320 and to have a six-year life and no salvage value. The equipment is expected to generate income of $15,839 and net cash flow of $76,506 in each year of its six-year life. Santana requires an 6% return on all investments, (PV of S1, PV of \$1. PVA of S1, and EVA of Si) (Use appropriate factor(s) from the tables provided.) (Negative net present values should be indicated with a minus sign. Di not round intermediate calculations. Round your present value factor to 4 decimals and final answers to the nearest whole number.) Required: 1-a. Compute the payback period for this equipment. 1-b. Compute the net present value for this equipment. 1-c. Compute internal rate of return for this equipment. 2. If Santona requires investments to have payback periods of four years or less, should she imvest in this equipment? 3. If Santana requires investments to hove ot least an 6% internal rate of return, should she irvest in this equipment? Complete this question by entering your answers in the tabs below. 2. If Santana requires investments to have payback periods of four years or less, should she invest in this equipment? 3, If Santana requires investments to have at least an 6% internal rate of return, should she iovest in this equipment

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