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Biotech company is considering buying a machine. The cashflows at the beginning of the year for...

Biotech company is considering buying a machine. The cashflows at the beginning of the year for each machine are shown in the following table. Assume a rate of return of 12%. Find the IRR and NPV of each machine. Which machine should Biotech buy? Do the machines have a unique IRR? Justify your answers.

Time

Year 0

Year 1

Year 2

Year 3

Year 4

Machine 1

-150

20

130

50

26

Machine 2

-90

-90

200

36

36

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jeff jeffy answered 3 years ago
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