Spero Industries has purchased new equipment that will provide an annual cash savings of $6,300 over its projected life of seven years. If the new equipment yields an internal rate of return equal to 12 percent, what is the cost of the new equipment? $.

Cecil company is considering the of a new machine. The machine cost $227,500 and will generate a yearly cash inflow of $35,000. what is the payback period? Requirement: what is the payback period?

If a copy center is considering the purchase of a new copy machine with an initial investment cost of $162,500 and the center expects an annual net cash flow of $25,000 per year, what is the payback period? fill in the blank  years

Vijay

What must the annual earnings be from a new piece of equipment that costs $10 million and has a projected operating life of 10 years? Assume the salvage value is $800,000 at the end of year 10. Use an interest rate of 10% compounded annually.

Calculate the present value of the cash savings: Samson Inc. is contemplating the purchase of a machine that will provide it with the net after-tax cash savings of $100,000 per year for eight years. Interest is 10%. Assume the cash savings occur at the end of each year.

The maintenance cost for an investment is $2000 per year for the first 10 years and $1000 per year, for the 10 years past the initial maintenance period. The salvage value of the investment is $15,000. Draw the cash flow and calculate the present value of costs and benefits if the rate of return is 5%.

An investment that cost $20,000 will produce annual cash flow’s of $5000 for a period of six years. Further, the investment has an expected salvage value of $3000. Given a desired rate of return of 12%, what will the investment generate?

Replacing old equipment at an immediate cost of $40,000 and an additional outlay of $25,000 three years from now will result in savings of $15,000 per year for 5 years. The required rate of return is 7% compounded annually. Compute the net present value and determine if the investment should be accepted or rejected according to the net present value criterion. The net present value of the project is S. (Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.) The proposal should be rejected. accepted.

Replacing old equipment at an immediate cost of $50,000 and an additional outlay of $30,000 six years from now will result in savings of $3,000 per quarter for 12 years. The required rate of return is 10% compounded annually. Determine the net present value and if the investment should be accepted or rejected.