A specialized automatic machine costs $300.000 and is expected to save $111,837 50 per year while in operation. Using a 12% interest rate, what is the discounted payback period? Select one a. 4 b 8 c.5 d 7 e 6 A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional $8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifth year through the fifteenth year At the end of 15 years the company can be sold for $33,000 The ERR when externeal reinvestment rate per period is 12% Select one a. 10.74% b. 12.3% c. 19.25% d. 8.5% Ans both.. otherwise don't give ans
A specialized automatic machine costs $300.000 and is expected to save $111,837 50 per year while in operation. Using a 12% interest rate, what is the discounted payback period? Select one a. 4 b 8 c.5 d 7 e 6 A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional $8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifth year through the fifteenth year At the end of 15 years the company can be sold for $33,000 The ERR when externeal reinvestment rate per period is 12% Select one a. 10.74% b. 12.3% c. 19.25% d. 8.5% Ans both.. otherwise don't give ans
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A specialized automatic machine costs $300.000 and is expected to save $111,837 50 per year while in
operation. Using a 12% interest rate, what is the discounted payback period?
Select one
a. 4
b 8
c.5
d 7
e 6
A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional
$8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifth
year through the fifteenth year At the end of 15 years the company can be sold for $33,000
The ERR when externeal reinvestment rate per period is 12%
Select one
a. 10.74%
b. 12.3%
c. 19.25%
d. 8.5%
Ans both.. otherwise don't give ans
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