Solution-Determine terra payback period

Determine terra payback period

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Reference no: EM132802699

Bullock Prosthetics is planning to buy 3-D printing machinery costing $380,000. This machinery's expected useful life is 5 years. They require a minimum rate of return of 8%, and have calculated the following data pertaining to the purchase and operation of this machinery:

_Year	Estimated Annual Cash Inflows	Estimated Annual Cash Outflows	_Depreciation
1	$ 90,000	$15,000	$60,000
2	$150,000	$45,000	$60,000
3	$230,000 $95,000		$60,000
4	$270,000	$110,000	$60,000
5	$300,000	$125,000	$60,000

Problem 1: Determine Terra's payback period, accounting rate of return, and NPV for this investment?

Reference no: EM132802699

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Determine terra payback period

Reference no: EM132802699

Reference no: EM132802699

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