Solution-Compute the net present value

Compute the net present value

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Reference no: EM132625826

Question - Diamond Company is considering purchasing a machine that would cost $756,000 and have a useful life of 8 years. The machine would reduce cash operating costs by $132,632 per year. The machine would have a salvage value of $151,200 at the end of the project.

Required - Compute the Net present value, Internal rate of return, Profitability index, Payback period, Simple rate of return and Should the company purchase the machine? Why or why not?

Reference no: EM132625826

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Compute the net present value

Reference no: EM132625826

Reference no: EM132625826

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