The XYZ Company is contemplating the purchase of a new milling machine. The purchase price of the new machine is $60 000 and its annual operating…

Published by admin at November 15, 2023

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The XYZ Company is contemplating the purchase of a new milling machine. The purchase price of the new machine is $60 000 and its annual operating cost is $2 675.40. The machine has a life of 7 years, and it is expected to generate $15 000 in revenues in each year of its life. MARR is set at 20%.

a. What is the Rate of Return of the acquisition?

b. How much is the cash flow excess?

c. The NPV of the investment is .

d. Payback Period is .

The XYZ Company is contemplating the purchase of a new milling machine. The purchase price of the new machine is $60 000 and its annual operating…

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