Question

A company is considering investing in a new machine that requires a cash payment of $51,939...


A company is considering investing in a new machine that requires a cash payment of $51,939 today. The machine will generate annual cash flows of $20,885 for the next three years.

What is the internal rate of return if the company buys this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

Amount Invested -    Annual Net Cash Flow = Present Value Factor
Internal Rate of Return %


Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A company is considering investing in a new machine that requires a cash payment of $61,949...
A company is considering investing in a new machine that requires a cash payment of $61,949 today. The machine will generate annual cash flows of $24,911 for the next three years. QS 11-13 Internal rate of return LO P4 What is the internal rate of return if the company buys this machine? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Park Co. is considering an investment that requires immediate payment of $26,945 and provides expected cash...
Park Co. is considering an investment that requires immediate payment of $26,945 and provides expected cash inflows of $8,500 annually for four years. Park Co. requires a 7% return on its investments. 1-a. What is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) Cash Flow Select Chart Amount x PV Factor = Present...
A company is investing in a solar panel system to reduce its electricity costs. The system...
A company is investing in a solar panel system to reduce its electricity costs. The system requires a cash payment of $110,174.60 today. The system is expected to generate net cash flows of $10,430 per year for the next 35 years. The investment has zero salvage value. The company requires an 8% return on its investments. 1-a. Compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate...
Baird Bros. Construction is considering the purchase of a machine at a cost of $139,000. The...
Baird Bros. Construction is considering the purchase of a machine at a cost of $139,000. The machine is expected to generate cash flows of $30,000 per year for 10 years and can be sold at the end of 10 years for $20,000. Interest is at 12%. Assume the machine purchase would be paid for on the first day of year one, but that all other cash flows occur at the end of the year. Ignore income tax considerations. (FV of...
Beyer Company is considering the purchase of an asset for $250,000. It is expected to produce...
Beyer Company is considering the purchase of an asset for $250,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 12% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $ 86,000 $ 56,000 $ 86,000 $...
xercise 25-6 Net present value LO P3 A new operating system for an existing machine is...
xercise 25-6 Net present value LO P3 A new operating system for an existing machine is expected to cost $770,000 and have a useful life of six years. The system yields an incremental after-tax income of $295,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $12,400. A machine costs $470,000, has a $30,500 salvage value, is expected to last eight years, and will generate an after-tax income of $70,000 per year after straight-line...
Canliss Mining Company borrowed money from a local bank. The note the company signed requires five...
Canliss Mining Company borrowed money from a local bank. The note the company signed requires five annual installment payments of $20,000 beginning one year from today. The interest rate on the note is 9%.(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) What amount did Canliss borrow? (Round your final answers to nearest whole dollar amount.) Table or calculator function: Payment: n =...
Beyer Company is considering the purchase of an asset for $190,000. It is expected to produce...
Beyer Company is considering the purchase of an asset for $190,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 15% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $ 78,000 $ 46,000 $ 84,000 $...
QS B-6 Present value of an annuity LO P3 Beene Distributing is considering a project that...
QS B-6 Present value of an annuity LO P3 Beene Distributing is considering a project that will return $230,000 annually at the end of each year for the next ten years. If Beene demands an annual return of 9% and pays for the project immediately, how much is it willing to pay for the project? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round PVA factor to 4...
Beyer Company is considering the purchase of an asset for $225,000. It is expected to produce...
Beyer Company is considering the purchase of an asset for $225,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 15% return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Year 4 Year 5 Total Net cash flows $ 76,000 $ 55,000 $ 94,000 $...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT