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We are considering the purchase of a machine that will cost $ 1 0 , 0 0 0 and increase profits by $ 4 ,
We are considering the purchase of a machine that will cost $ and increase profits by $ each year over its year useful life. There is no salvage value on the machine at the end of five years. Depreciation will be $ per year and is not included in the profit listed above. The companys cost of capital is Calculate the Net Present Value:Calculate the Payback period:Hint: Use a table format to keep your answer organizedThe company uses straight line depreciation for machines. Calculate the Average Accounting Return:Calculate the Profitability Index: HINT: remember you already did most of the calculations when you did the NPV so you can lift numbers from aboveWe are considering the purchase of a machine that will cost $ and increase profits by $ each year over its year useful life. There is no salvage value on the machine at the end of five years. Depreciation will be $ per year and is not included in the profit listed above. The companys cost of capital is Calculate the Net Present Value:Calculate the Payback period:Hint: Use a table format to keep your answer organizedThe company uses straight line depreciation for machines. Calculate the Average Accounting Return:Calculate the Profitability Index: HINT: remember you already did most of the calculations when you did the NPV so you can lift numbers from above
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