Question
In: Accounting
G Wagon would like to purchase a printing machine for $300,000. The machine is expected to...
G Wagon would like to purchase a printing machine for $300,000. The machine is expected to have a life of three years and a salvage value of $30,000. Annual maintenance costs will total $96,000. Annual cash savings are predicted to be $125,000. G Wagon required rate of return is 12%.
Now, use Excel to compute the internal rate of return (IRR) of this capital opportunity. Again, press Ctrl + `. Copy your work in this form from Excel into the space below:
What is the IRR that you calculated?
Solutions
Expert Solution
The required rate of return is 12% but the machine is generating negative retures. So the proposal should not be accepted .
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ekkarill92 answered 2 years agoRelated Solutions
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