Required information (The following information applies to the questions displayed below.) A company is considering...
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Required information (The following information applies to the questions displayed below.) A company is considering investing in a new machine that requires a cash payment of $38,198 today. The machine will generate annual cash flows of $15,904 for the next three years. What is the internal rate of return if the company buys this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Amount Invested 0 Annual Net Cash Flow - Present Value Factor Internal Rate of Return Required information (The following information applies to the questions displayed below.) A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $105,605.50 today. The system is expected to generate net cash flows of $10,950 per year for the next 35 years. The investment has zero salvage value. The company requires an 9% return on its investments. 1-a. Compute the net present value of this investment. (PV of $1. FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) Chart Values are Based on: Select Chart Cash Flow Annual cash flow Amount x PV Factor = Present Value $ 0.00 Net present value 1-b. Should the project be accepted? Yes
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