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Vage zor Question 2 (15 points) ze 2 A company is looking to buy a new stand the following chose determined Annual cash flows Year

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Vage zor Question 2 (15 points) ze 2 A company is looking to buy a new stand the following chose determined Annual cash flows Year o Year 1 Year 2 Year 3 Year 4 03 (2.000) 20.667 25,66% 6,500 6.500 $ ES Required retum Required payback 99 In addition the controller thanks that she che sell the ment the end of its useful life for 55.000 Calculate IRR of be project Calculate NPV of the project C. Caleate Payback Calculate discounted payback of the project Ens comment to problemer med (15 points) Saved A company is looking to buy a new equipment and the following cash flows were determined 9 Annual cash flows: Year 0 ear 1 Year 2 Year 3 Year 4 (62,000) 20,667 26.667 6,500 6.500 Required return Required payback 9% In addition, the controller thinks that she can sell the equipment at the end of its useful life for $3,000 A Calculate IRR of the project B. Calculate NPV of the project C Calcolate Payback D. Calculate discounted payback of the project E Gitt a recommendation to the controller av to by the project to be accepted or resected Vage zor Question 2 (15 points) ze 2 A company is looking to buy a new stand the following chose determined Annual cash flows Year o Year 1 Year 2 Year 3 Year 4 03 (2.000) 20.667 25,66% 6,500 6.500 $ ES Required retum Required payback 99 In addition the controller thanks that she che sell the ment the end of its useful life for 55.000 Calculate IRR of be project Calculate NPV of the project C. Caleate Payback Calculate discounted payback of the project Ens comment to problemer med (15 points) Saved A company is looking to buy a new equipment and the following cash flows were determined 9 Annual cash flows: Year 0 ear 1 Year 2 Year 3 Year 4 (62,000) 20,667 26.667 6,500 6.500 Required return Required payback 9% In addition, the controller thinks that she can sell the equipment at the end of its useful life for $3,000 A Calculate IRR of the project B. Calculate NPV of the project C Calcolate Payback D. Calculate discounted payback of the project E Gitt a recommendation to the controller av to by the project to be accepted or resected

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