Find what is the internal rate of return of the machine

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Reference no: EM132750189

Builtrite has estimated their cost of capital is 14% and they are considering the purchase of a machine with the following capital budget:

Initial Investment $62,000
RATFCF Year 1 $22,000
RATFCF Year 2 $30,000
RATFCF Year 3 $38,000

Problem 1. What is the machine's NPV?

Problem 2. What is the Profitability Index (PI) of this machine?

Problem 3. What is the Internal Rate of Return of this machine?

Reference no: EM132750189

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