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Shine Co. is looking at expanding its business to include Bitcoin Mining, and change their name to CoinCo. They will need to purchase $1,000,000 worth
Shine Co. is looking at expanding its business to include Bitcoin Mining, and change their name to CoinCo. They will need to purchase $1,000,000 worth of mining machines. It is estimated that these machines will generate $1,000 in revenue per day. The machines will require 15 days of maintenance per year, during which time they will not produce any revenue. Shine Co. estimates that the machines will cost $100 per day of operation. CoinCo also has to pay a commission of 1 penny per dollar of revenue. CoinCo has a 7.5% cost of capital and a 25% tax rate. The machines can be sold for 25% of the original cost after 5 years. The machines will be depreciated using straight-line depreciation over 5 years. What is the project's: NPV IRR PAYBACK PERIOD DISCOUNTED PAYBACK PERIOD NET PAYBACK PERIOD
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