Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. calculate the npv, irr, and payback period for the

Calculate the NPV, IRR, and Payback Period for the following information: A machine is purchased...

90.2K

Verified Solution

Question

Accounting

image
Calculate the NPV, IRR, and Payback Period for the following information: A machine is purchased for $12 million with $1 million modification cost and $1 million shipping cost. Net operating working capital of $3 million is needed. The machine will generate additional annual revenue of $8 million and additional annual costs and expenses of $4 million. The machine has a 5 year life and will be depreciated using straight line depreciation. The salvage value of the machine for depreciation purposes is $3 million. It is estimated the machine can be sold after 5 years for $4 million (tax rate is 40% ). The company WACC is 8%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

on 12 discussion of both the similarit or ideas is called

Basic Math
Q

Describe the important of meeting in organization.

Electrical Engineering
Q

  What are Rosette analysis and Flexure formula? Comment on the comparison between experimental values obtained through...

Mechanical Engineering
Q

Consider a Si NPN BJT. Discuss how an change in one of the design parameters affect...

Electrical Engineering
Q

A wire of length 2 5 m is attached with a load of 3 kg...

Physics
Q

A particle of mass 2 kg is dropped from a height of 20m and rises...

Physics
Q

Consider the trapezoidal numbers 1 1 1 1 2 2 2 1 1 2 3...

Basic Math
Q

30 27 24 21 18 15 12 9 6 3 4 3 2 1 For...

Calculus
Q

a 2 Cost Coefficients and Safety...

Accounting
Q

2 5 9 10 Bridgeport Hardware Store Inc. completed the following merchandising transactions in the...

Accounting
Q

QUALITY FOODSTOTAL LANDED COST CASE Randall Cox is a senior buyer at Quality Foods, a...

Accounting
Q

The Argyll Corporation wants to set up a private cemetery business. According to the CFO,...

Finance