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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 $377,280 and to have a six-year life and no salvage value. The equipment is expected to generate income of $15,439 and net cash flow of $84,104 in each year of its six-year life. Santana requires an 10% return on all investments. (PV of $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 periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 10% internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 1C Req 2 and 3 Compute the payback period for this equipment. Numerator: Initial investment Payback Period 1 Denominator: / Annual net cash flow 377,2801 $ Payback period 4.49 years $ 84,104 = 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 $377,280 and to have a six-year life and no salvage value. The equipment is expected to generate income of $15,439 and net cash flow of $84,104 in each year of its six-year life. Santana requires an 10% return on all investments. (PV of $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 periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 10% internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1C Req 2 and 3 Compute the net present value for this equipment. (Negative values must be entered as a negative number.) Net Cash Flows $ 84,104 x Present Value of Annuity at 10% Present Value of Net Cash Flows $ Years 1-6 = 0 = Net present value = 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 $377,280 and to have a six-year life and no salvage value. The equipment is expected to generate income of $15,439 and net cash flow of $84,104 in each year of its six-year life. Santana requires an 10% return on all investments. (PV of $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 periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 10% internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 1C Req 2 and 3 Compute internal rate of return for this equipment. Present Value Factor Denominator: Numerator: = Present Value Factor 0 Periods (P) = Internal Rate of Return % 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 $377,280 and to have a six-year life and no salvage value. The equipment is expected to generate income of $15,439 and net cash flow of $84,104 in each year of its six-year life. Santana requires an 10% return on all investments. (PV of $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 periods of four years or less, should she invest in this equipment? 3. If Santana requires investments to have at least an 10% internal rate of return, should she invest in this equipment? Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 1C Reg 2 and 3 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 10% internal rate of return, should she invest in this equipment? Do not invest 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 10% internal rate of return, should she invest in this equipment? Do not invest

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