Determine payback and npv, finance, Other Engineering

Payback & NPV

Julia Corp. is in the business of making sugar cookies. The company is considering the purchase of a new cookie making machine which will improve its manufacturing process and result in significant cost savings. The equipment costs $250,000 and the resulting financial impact is an after-tax cash flow savings of $60,000 in yr. 1 with this savings increasing by $10,000 annually with the 5th year resulting in after-tax cash flow savings of $100,000. At the end of the 5th year the machine will be sold for $10,000. Assume that the prevailing market rate of interest is 13%.
Determine the payback period for the proposed investment?
Posted Date: 2/5/2012 12:57:51 PM | Location : United States







Related Discussions:- Determine payback and npv, finance, Assignment Help, Ask Question on Determine payback and npv, finance, Get Answer, Expert's Help, Determine payback and npv, finance Discussions

Write discussion on Determine payback and npv, finance
Your posts are moderated
Related Questions
The energy release rate, often denoted by G, is the amount of energy per unit area that is supplied by the elastic energy in the body and loading system in creating a new fracture

PROPELLER SPINNERS All modern propeller-driven aeroplanes have spinners over their propeller hubs. These spinners have the dual aerodynamic function of streamlining the engine

I need the following corporate finance problems completed in an excel spreadsheet. How much would this cost? 1) An investment project requires a net investment of $100,000. The pr

Turbo shaft engines : Gas turbine engines that deliver power through a shaft to operate something other than a propeller are referred to as turboshaft engines. In most cases th

Q. What is Recovery and Recrystallization? Ans. Due to the cold working of metals there arise a large number of dislocations and distortion of planes. Cold working of metals

Air-System in Aircraft Engine: In the working cycle and airflow section we discussed the main airflow and working cycle of a gas turbine engine and found that a major function


Question: (a) What are the elements limiting high data rate in cellular networks? (b) Describe the following characteristics of 4G mobile networks: - Always on - RAN A

Cash Flow Diagrams We will use a cash flow approach to analyze the flow of money through out a planning horizon. A cash flow occurs when money actually change hands. We will u

What are the no-arbitrage lower bound, and the no-arbitrage upper bound, of the vertical spread c(k1)-c(k2)?