Homework Help is Here – Start Your Trial Now!
Business
Finance
The Company is evaluating investing in a new metal stamping machine costing $80,458. The Company estimates that it will realize $14,000 in annual cash inflows for each year of the machine's 8-year useful life. The internal rate of return (IRR) for the machine is approximately: Present Value of $1 Periods 6% 8% 10% 12% 14% 3 0.840 0.794 0.751 0.712 0.675 4 0.792 0.735 0.683 0.636 0.592 5 0.747 0.681 0.621 0.567 0.519 6 0.705 0.630 0.564 0.507 0.456 7 0.665 0.583 0.513 0.452 0.400 8 0.627 0.540 0.467 0.404 0.351 9 0.592 0.500 0.424 0.361 0.308 10 0.558 0.463 0.386 0.322 0.270 Present Value of Annuity of $1 Periods 6% 8% 10% 12% 14% 3 2.673 2.577 2.487 2.402 2.322 4 3.465 3.312 3.170 3.037 2.914 5 4.212 3.993 3.791 3.605 3.433 6 4.917 4.623 4.355 4.111 3.889 7 5.582 5.206 4.868 4.564 4.288 8 6.210 5.747 5.335 4.968 4.639 9 6.802 6.247 5.759 5.328 4.946 10 7.360 6.710 6.145 5.650 5.216     8%.     12%.     4%.     6%.

The Company is evaluating investing in a new metal stamping machine costing $80,458. The Company estimates that it will realize $14,000 in annual cash inflows for each year of the machine's 8-year useful life. The internal rate of return (IRR) for the machine is approximately: Present Value of $1 Periods 6% 8% 10% 12% 14% 3 0.840 0.794 0.751 0.712 0.675 4 0.792 0.735 0.683 0.636 0.592 5 0.747 0.681 0.621 0.567 0.519 6 0.705 0.630 0.564 0.507 0.456 7 0.665 0.583 0.513 0.452 0.400 8 0.627 0.540 0.467 0.404 0.351 9 0.592 0.500 0.424 0.361 0.308 10 0.558 0.463 0.386 0.322 0.270 Present Value of Annuity of $1 Periods 6% 8% 10% 12% 14% 3 2.673 2.577 2.487 2.402 2.322 4 3.465 3.312 3.170 3.037 2.914 5 4.212 3.993 3.791 3.605 3.433 6 4.917 4.623 4.355 4.111 3.889 7 5.582 5.206 4.868 4.564 4.288 8 6.210 5.747 5.335 4.968 4.639 9 6.802 6.247 5.759 5.328 4.946 10 7.360 6.710 6.145 5.650 5.216     8%.     12%.     4%.     6%.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question

  1. The Company is evaluating investing in a new metal stamping machine costing $80,458. The Company estimates that it will realize $14,000 in annual cash inflows for each year of the machine's 8-year useful life. The internal rate of return (IRR) for the machine is approximately:

    Present Value of $1

    Periods 6% 8% 10% 12% 14%
    3 0.840 0.794 0.751 0.712 0.675
    4 0.792 0.735 0.683 0.636 0.592
    5 0.747 0.681 0.621 0.567 0.519
    6 0.705 0.630 0.564 0.507 0.456
    7 0.665 0.583 0.513 0.452 0.400
    8 0.627 0.540 0.467 0.404 0.351
    9 0.592 0.500 0.424 0.361 0.308
    10 0.558 0.463 0.386 0.322 0.270

    Present Value of Annuity of $1

    Periods 6% 8% 10% 12% 14%
    3 2.673 2.577 2.487 2.402 2.322
    4 3.465 3.312 3.170 3.037 2.914
    5 4.212 3.993 3.791 3.605 3.433
    6 4.917 4.623 4.355 4.111 3.889
    7 5.582 5.206 4.868 4.564 4.288
    8 6.210 5.747 5.335 4.968 4.639
    9 6.802 6.247 5.759 5.328 4.946
    10 7.360 6.710 6.145 5.650 5.216
       

    8%.
       

    12%.
       

    4%.
       

    6%.
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Capital Budgeting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS