It is proposed to purchase a certain machine, in the amount of R$92,087.08, for profitable purposes, and the prospective buyer has a minimum attractive rate of 10% p.a. The machine will provide a net income of R$20,000 .00 in the first year, then decreasing the base of R$1000.00. The estimated resale value 12 years from now is R$26,000.00. It is asked: a) Current Value b) IRR c) Should a purchase be made? Because?

It is proposed to purchase a certain machine, in the amount of R$92,087.08, for profitable purposes, and the prospective buyer has a minimum attractive rate of 10% p.a. The machine will provide a net income of R$20,000 .00 in the first year, then decreasing the base of R$1000.00. The estimated resale value 12 years from now is R$26,000.00. It is asked: a) Current Value b) IRR c) Should a purchase be made? Because?

Name: 37- It is proposed to purchase a certain machine, in the amount of R$9
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Description: 37- It is proposed to purchase a certain machine, in the amount of R$92,087.08, for profitable purposes, and the prospective buyer has a minimum attractive rate of 10% p.a. The machine will provide a net income of R$20,000 .00 in the first year, then

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter9: Capital Budgeting Techniques

Section: Chapter Questions

Problem 13PROB

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