Question
Table Provided (Can't post pictures or tables for some reason so i have to do it manually): ................Investment.......1.........2........3........4........5.......6........7 Project A.....28000........8000 (every year for the rest
Table Provided (Can't post pictures or tables for some reason so i have to do it manually):
................Investment.......1.........2........3........4........5.......6........7
Project A.....28000........8000 (every year for the rest of the 7 years)
Project B ....20000.......5000.....5000....6000....6000..7000...7000...7000
Zaire Electronics can make either of the two investments at a time 0. Assuming a required rate of return of 14 percent, determine for each project:
A. Payback period
B. the NPV
C. the Profitability Index
D. IRR
Assume under MARCS the asset falls in the five year property class and that the corp tax rate is 34 percent. The initial investments required and yearly savings before deprecian and taxes are shown in the table above. Pls show all work. Thanks and sorry for the long problem.
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