Sri CoffeePtyLtd is considering investing in a new coffee bean roasting machine. The machine is estimated to cost $150,000 which can last for 7 years before it becomes too costly to maintain and can be sold for scrap at $15,000. The project is estimated to bring in additional $30,000 cash inflow and incur $10,000inadditionalexpensesrelated to the running the machine in the first year. The company expects there will be an annual sales growthof 5%from year 2 onward. Expenses are also expected to grow by2% annually from the second year of the operation.

The company plans to fund the purchase of the new machine using a bank loan with an interest rate of 13%.

1. How long is the payback period for this project?years.Case sensitive. Type in 7.00 (two decimal places) for 7 years.
2. What is the NPV for this project? $.Case sensitive. Type in 120,000.00 (two decimal places) for $120,000.00, or -120,000.00 for negative $120,000.00.
3. What is the IRR for this project?%.Case sensitive. Type in 20.00 (two decimal places) for 20%.

Multiple Not allowed. This Test can only be taken once. Attempts Force This Test can be saved and resumed at any point until time has expired. The timer will continue to run if you leave the test. Completion Your answers are saved automatically. Remaining Time: 1 hour, 29 minutes, 21 seconds. Question Completion Status: > Moving to another question will save this response. Question 1 of 14 > > Question 1 8 points Save Answer Sri Coffee Pty Ltd is considering investing in a new coffee bean roasting machine. The machine is estimated to cost $150,000 which can last for 7 years before it becomes too costly to maintain and can be sold for scrap at $15,000. The project is estimated to bring in additional $30,000 cash inflow and incur $10,000 in additional expenses related to the running the machine in the first year. The company expects there will be an annual sales growth of 5% from year 2 onward. Expenses are also expected to grow by 2% annually from the second year of the operation. The company plans to fund the purchase of the new machine using a bank loan with an interest rate of 13%. a. How long is the payback period for this project? years. Case sensitive. Type in 7.00 (two decimal places) for 7 years. b. What is the NPV for this project? $ Case sensitive. Type in 120,000.00 (two decimal places) for $120,000.00, or -120,000.00 for negative $120,000.00. c. What is the IRR for this project? %. Case sensitive. Type in 20.00 (two decimal places) for 20%. Moving to another question will save this response. Question 1 of 14 > 9 ENG 11:50 PM IN 30/10/2020 hp