1-Cinemar Productions bought a piece of equipment for $150,847 that will last for 5 years. The equipment will generate net operating cash flows of $45,000 per year and will have no salvage value at the end of its life. What is the internal rate of return? 2-Your company is planning to purchase a new log splitter for its lawn and garden business. The new splitter has an initial investment of $81,000. It is expected to generate $10,000 of annual cash flows, provide incremental cash revenues of $152,437, and incur incremental cash expenses of $130,000 annually. What is the payback period? What is the APR?
1-Cinemar Productions bought a piece of equipment for $150,847 that will last for 5 years. The equipment will generate net operating
2-Your company is planning to purchase a new log splitter for its lawn and garden business. The new splitter has an initial investment of $81,000. It is expected to generate $10,000 of annual cash flows, provide incremental cash revenues of $152,437, and incur incremental cash expenses of $130,000 annually. What is the payback period? What is the APR?
3-How much must be invested now to receive $28,000 for 11 years if the first $28,000 is received one year from now and the rate is 8%? Round your present value factor to three decimal places and final answer to the nearest dollar.
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 1 images
by Bartleby Expert
