Chapter 19, Problem 25P

1.

To determine

Compute the net present value for each investment using 18% discount rate.

2.

To determine

Compute the net present value for each investment using 14% discount rate.

3.

To determine

Identify the discount rate that would be more appropriate to compute the net present value.

4.

To determine

Calculate the net present value of the traditional equipment if cash flows are decreased by 50% for Years 3-10.