Consolidated Aluminum is considering the purchase of a new machine that will cost $308,000 and provide the following cash flows over the next five years: $88,000, 92,000, $91,000, $72,000, and $71,000. What is the internal rate of return (IRR) for this piece of equipment? Use the Present Value tables in Time Value of Money Appendix of the book or use Excel to calculate the answer. Round to 2 decimal places. O Cannot be determined from the information provided. O 11.30 % O 11.28% O 11.00%

Haresh vala

Solve for the missing information pertaining to each investment proposal. Using the tables in Exhibit 26–3 determine the present value of the following cash flows, discounted at an annual rate of 15 percent. $40,000 to be received 20 years from today. $24,000 to be received annually for 10 years. $16,000 to be received annually for five years, with an additional $20,000 salvage value expected at the end of the fifth year. $30,000 to be received annually for the first three years, followed by $20,000 received annually for the next two years (total of five years in which cash is received)

Foster Company wants to buy a special automated machine to replace an existing manual system.  The initial outlay (cost) is $3,500,000.  The new machine will last 5 years with no expected salvage value.  The expected annual cash flows are as follows:                 Year Cash Inflow Cash Outflow           0  $                            -    $          3,500,000.00           1  $        3,900,000.00  $          3,000,000.00           2  $        3,900,000.00  $          3,000,000.00           3  $        3,900,000.00  $          3,000,000.00           4  $        3,900,000.00  $          3,000,000.00           5  $        3,900,000.00  $          3,000,000.00                           Foster has a cost of capital equal to 10%.                           1.   Calculate the payback period.       Payback period:   years