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A New Machine Will Cost $100,000 and Generate After-Tax Cash

Question 109

Essay

A new machine will cost $100,000 and generate after-tax cash inflows of $356,000 for four years.Find the NPV if the firm uses a 12 percent opportunity cost of capital.What is the IRR? What is the payback period?

Correct Answer:

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NPV = $35,000 blured image - $100,000
= $3...

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