Pls help with below homeowork. 8. A business firm is contemplating to purchase new equipment. The purchase price is 60,000and its annual operating cost is 2,675.4. The machine has a life of 7 years and is expected togenerate 15,000 in revenues in each year of its life. Determine the internal rate of return ofthe machine, assuming zero salvage value.9. The cash flow associated with a laboratory equipment are as follows:Year 0-50,00015,000Year 1 to 5At a MARR of 10% per year, calculate the machines net present value.10. Determine the net present value of the following.Initial cost10,000Project life, YearsSalvage valueAnnual revenues10,00060,000Annual expenditures22,000Interest rate15%

The question pertains to the concept of capital budgeting tools and time value of money and has been…

A business firm is contemplating to purchase new equipment. The purchase price is 60,000 and its annual operating cost is 2,675.4. The machine has a life of 7 years and is expected to generate 15,000 in revenues in each year of its life. Determine the internal rate of return of the machine, assuming zero salvage value.

A business firm is contemplating to purchase new equipment. The purchase price is 60,000 and its annual operating cost is 2,675.4. The machine has a life of 7 years and is expected to generate 15,000 in revenues in each year of its life. Determine the internal rate of return of the machine, assuming zero salvage value.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 11PA: Gallant Sports s considering the purchase of a new rock-climbing facility. The company estimates...

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