Question
The green Goddess company is considering the purchase of a new machine that would increase the speed of manufacturing tires and save money. The net
The green Goddess company is considering the purchase of a new machine that would increase the speed of manufacturing tires and save money. The net cost of the new machine is $45,000. The annual cash flows have the following projections.
Year Cash flow
| 1 | $15,000 |
| 2 | $20,000 |
| 3 | $25,000 |
| 4 | $10,000 |
| 5 | $5,000 |
If the cost of capital is 10%, what is the NPV
What is the IRR?
Should the project be accepted?
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Professionals Handbook Of Financial Risk Management
Authors: Lev Borodovsky, Marc Lore
1st Edition
0750641118, 978-0750641111
