Pls help with below homeowork. 8. A business firm is contemplating to purchase new equipment. The purchase price is 60,000and its annual operating cost is 2,675.4. The machine has a life of 7 years and is expected togenerate 15,000 in revenues in each year of its life. Determine the internal rate of return ofthe machine, assuming zero salvage value.9. The cash flow associated with a laboratory equipment are as follows:Year 0-50,00015,000Year 1 to 5At a MARR of 10% per year, calculate the machines net present value.10. Determine the net present value of the following.Initial cost10,000Project life, YearsSalvage valueAnnual revenues10,00060,000Annual expenditures22,000Interest rate15%

The question pertains to the concept of capital budgeting tools and time value of money and has been…

A business firm is contemplating to purchase new equipment. The purchase price is 60,000 and its annual operating cost is 2,675.4. The machine has a life of 7 years and is expected to generate 15,000 in revenues in each year of its life. Determine the internal rate of return of the machine, assuming zero salvage value.

A business firm is contemplating to purchase new equipment. The purchase price is 60,000 and its annual operating cost is 2,675.4. The machine has a life of 7 years and is expected to generate 15,000 in revenues in each year of its life. Determine the internal rate of return of the machine, assuming zero salvage value.

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter10: Project Cash Flows And Risk

Section: Chapter Questions

Problem 4PROB

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