Question
Your company is investing in a 3D printer for $10,000 that you will use for 5 years. The annual expected revenue generated from sale of
Your company is investing in a 3D printer for $10,000 that you will use for 5 years. The annual expected revenue generated from sale of products made by this printer is $5,310 and annual expenses for the printer are $3,000. The expected salvage value at the end of 5 years is $2,000. Your companys minimum attractive rate of return is 12%. Based on internal rate of return analysis, required by your company, is this investment economically acceptable? Why or why not?
1. Cash flow diagram of your problem
2. Specify the model/equation used [e.g. P=F(1+i)-N ]
3. Specify the values of each parameter [e.g. i=0.05 or 5% ]
4. Show your work for how you calculate your numerical results.
5. Report dollar value with cents (e.g. $253.12),
6. Answer the question of the problem with a complete sentence that includes your numerical justification.
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