A machine has a 10-year life. It costs $5,000 to install today, and annual maintenance costs...

A machine has a 10-year life. It costs $5,000 to install today, and annual maintenance costs in years 1-10 are $500 per year. If the discount rate is 7%, what is the machine's equivalent annual annuity (EAA)?

A project requires an initial investment of $20,000 today (i.e. year 0). Expected future cash flows in years 1-4 are $8000; $2000; $3000 and $6000 respectively.

If the discount rate is 8%, what is the NPV?

What is the IRR?

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jeff jeffy answered 1 year ago

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