Question
Squeaky clean is considering investing in a solar-powered cleaning machine. The machine requires an initial investment of R50,000 and will generate after-tax cash flow of
Squeaky clean is considering investing in a solar-powered cleaning machine. The machine requires an initial investment of R50,000 and will generate after-tax cash flow of R18,000 per year for each of the next 6 years.
CAN YOU PLEASE ASSIST ME IN WORKING THROUGH THIS STEP BY STEP, SHOW ME HOW TO WORK OUT THE FORMULAE IN EXCEL PLEASE ?
- Determine the investment's accounting rate of return and its payback period.
- Calculate the investment's net present value at a 15 percent discount rate.
- Calculate the investment's profitability index at a 15 percent discount rate.
- Calculate the investment's internal rate of return.
- Based on your answers in part (a) to (d) discuss whether investing in this machine would be a good decision.
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Statistics For Managers Using Microsoft Excel
Authors: David M. Levine, David F. Stephan, Kathryn A. Szabat
7th Edition
978-0133061819, 133061817, 978-0133130805
