TSB machine project is a nonprofit organization and the expected additional operating cash inflows are $130,000 in years 1 through 5. The net initial investment is $392,500. A five year useful life, no terminal disposal value, and an 8% Required Rate of Return. Required: Calculate the following: Net present value, Internal rate of return, Reverse Payback Period, Break even time, and Profitability Index.
TSB machine project is a nonprofit organization and the expected additional operating cash inflows are $130,000 in years 1 through 5. The net initial investment is $392,500. A five year useful life, no terminal disposal value, and an 8% Required Rate of Return. Required: Calculate the following: Net present value, Internal rate of return, Reverse Payback Period, Break even time, and Profitability Index.
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
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