Determine the irr for the machine

Assignment Help Finance Basics
Reference no: EM132013886

Question: A new dough mixing machine will cost Carlo's bakery $23,000 and will generate $4,000 revenue per year for 5 years. The salvage value will be $4, 500 after the 5 years. Assume the bakery has a 5% MARR.

a) Determine the IRR for the machine. Please use interpolation.

b) Since Buddy wants at least a 5% return on his investments, should the machine be purchased? Why?

Reference no: EM132013886

Questions Cloud

Ideas of the american century : Someone help me to Compare and contrast the ideas of "The American Century" by Henry Luce and "The Price of Free World Victory" by Henry Wallace.
Perform research on women suicide bombers in the us : As part of the mayor's Terrorism Assessment and Response Team, your first report assessed the risk to a particularly high-profile venue in Centervale.
How did wwii change american vision of themselves : How did WWII change American's vision of themselves as a people? How did the federal government promote this vision?
What are the total equivalent units for conversion costs : The ending work in process inventory was 600 ounces (25% complete). What are the total equivalent units for conversion costs
Determine the irr for the machine : A new dough mixing machine will cost Carlo's bakery $23,000 and will generate $4,000 revenue per year for 5 years. The salvage value will be $4,500.
Compare and contrast the first and second world wars : Compare and contrast the First and Second World Wars in terms of military strategy, technological development, and economic impact on the nations involved.
What was the relationship between black feminism-womanist : What was the relationship between black feminism/womanist and the white feminist movement?
How much profit can you earn on given amount : In New York, you can exchange $1 for 0.8026 or 0.6149. Suppose that, in Berlin, 1 costs 1.1814. How much profit can you earn on $40, 116 using triangle.
Contrast tactics used in the free south africa movement : Someone help me on how to Compare and contrast tactics used in the Free South Africa movement with the African American Freedom struggle.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Stocks coefficient of variation required rate return and

stocks coefficient of variation required rate return and risk analysisstock x has a 10 expected return a beta

  In mid-march 2007 the us dollar equivalent of a euro was

in mid-march 2007 the u.s. dollar equivalent of a euro was 1.3310. in mid-july2009 the u.s. dollar equivalent of a euro

  What aspects of work stress are revealed in this case

What suggestions can you make to the company for decreasing the stressors in the position of telemarketer?

  What important factors in addition to quantitative factors

What important factors in addition to quantitative factors should a firm consider when it is making a capital structure decision?

  What are the reinvestment rate assumptions of npv and pi

What does the term "crossover rate" mean? Why is this rate important in evaluating mutually exclusive projects?

  Show the trade off between asset value and asset volatility

Go back to the numerical example of section 29.5. Write a VBA function which solves for the implied asset value V a .

  Corporations are the only legal entity that issues stock

corporations are the only legal entity that issues stock for ownership. describe the aspects of a corporation and the

  How the government will affect economic conditions

Your firm is relying on you for some insight on how the government will influence economic conditions and therefore the demand for your firm's products. Given the circumstances, what is your forecast of how the government will affect economic cond..

  Determining the current ebitda

Capital Budgeting Analysis: You have been asked to evaluate a potential acquisition of a smaller privately owned competitor.

  Management discussion and analysis

One way Enron manipulated its financial statements was to sell assets at inflated prices to other firms, while giving a promise to buy back those assets at a later date. The incoming cash was recorded as revenue, but the promise to buy back the as..

  What are two primary issues that companies will face

What are two primary issues that companies will face as eCommerce and mCommerce take a firmer hold on the business world?

  Pick out a bank or other service firm

Pick out a bank or other service firm. Discuss why and how the organization matches the firm's strategic initiatives.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd