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You are considering investing $800,000 in new equipment for your farming operation. This equipment has an...

You are considering investing $800,000 in new equipment for your farming operation. This equipment has an expected life of 15 years, and will add $80,000 in after-tax cash flow to your operation each year. 1. What is the payback period for this equipment? 2. What is the total benefit (NOT NPV, just total benefit like we did last week) from this investment? 3. What is the average rate of return for this investment? 4. Assume a 4% discount rate and calculate the net present value of this investment. 5. Assume a 6% discount rate and calculate the net present value of this investment.

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jeff jeffy answered 2 years ago
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