Healthy Food, Inc. is considering two investments. Each costs $10,000 but they have different cash flows which are below. Compute the payback period for each. Year Project A Project B 1 $12,000 $10,000 2 8,000 6,000 3 6,000 16,000 and if Healthy food Inc. plans to purchase a new machine that will increase its manufacturing speed and save the company money. The cost of this machine is $66,000. The annual cash flow projections are below. If the cost of capital is 10 percent, what is the net present value? Year Cash Flow 1....................................... $21,000 2....................................... 29,000 3....................................... 36,000 4....................................... 16,000
Healthy Food, Inc. is considering two investments. Each costs $10,000 but they have different cash flows which are below. Compute the payback period for each.
|
Year |
Project A |
Project B |
|
1 |
$12,000 |
$10,000 |
|
2 |
8,000 |
6,000 |
|
3 |
6,000 |
16,000 |
and if
Healthy food Inc. plans to purchase a new machine that will increase its manufacturing speed and save the company money. The cost of this machine is $66,000. The annual cash flow projections are below. If the cost of capital is 10 percent, what is the
Year Cash Flow
1....................................... $21,000
2....................................... 29,000
3....................................... 36,000
4....................................... 16,000
5....................................... 8,000
Trending now
This is a popular solution!
Step by step
Solved in 4 steps with 6 images
