Sumitomo Heavy Industries Ltd . desires to buy a new crane and accessories to help move and
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Question:
Sumitomo Heavy Industries Ltd desires to buy a new crane and accessories to help move and install modular buildings. The machine sells for $ and requires working capital of $ Its estimated useful life is six years and it will have a salvage value of $ Sams depreciates all equipment on a straight line basis. Recovery of working capital will be $ at the end of its useful life. Annual cash savings from the purchase of the machine will be $
Required:
a Compute the net present value at a required rate of return.
b Compute the internal rate of return.
c Compute the Accounting Rate of Return
d Determine the payback period of the investment.
Related Book For
Intermediate Algebra
ISBN: 9780134895987
13th Edition
Authors: Margaret Lial, John Hornsby, Terry McGinnis
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