Question
In: Accounting
A company is considering the purchase of a piece of equipment that would cost $380,000 and...
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A company is considering the purchase of a piece of equipment that would cost $380,000 and would last for 8 years. At the end of 8 years, the equipment would have a salvage value of $97,500. The equipment would provide annual cost savings of $85,000. The company requires a minimum pretax return of 12% on all investment projects. (Ignore income taxes.) |
| Required: | ||||||||||||
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Provide your Excel input and the final net present value amount you calculated. (If a variable is not used in the calculation, input a zero (0). Omit the "$" and "%" signs in your response.) Round your answer to the nearest dollar and use a minus sign for negative numbers. Excel input:
|
| Required: |
|
Input the required variables and the computed internal rate of return. (If a variable is not used in the calculation, input a zero (0). Omit the "$" and "%" signs in your response.) Round your answer to one decimal place and use a minus sign for negative numbers. |
Excel input:
|
Rate |
% |
|
Nper |
| PMT | $ |
| PV | $ |
| FV | $ |
| Internal Rate of Return (IRR) | % |
Solutions
ekkarill92 answered 3 years agoRelated Solutions
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Quinn Industries is considering the purchase of a machine that would cost $380,000 and would last...
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Required:
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