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The Ohm Depot Co. is currently considering the purchase of a new machine that would increase the speed of manufacturing electronic equipment and save money.

The Ohm Depot Co. is currently considering the purchase of a new machine that would increase the speed of manufacturing electronic equipment and save money. The net cost of the new machine is $66,000. The annual cash flows have the following projections:

Year

Amount ($)

0

(66,000)

1

21,000

2

29,000

3

36,000

4

16,000

5

8,000

If the cost of capital is 10 percent, find the following:

a. The PVB

b. The NPV

c. The IRR

d. Payback

e. PI

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