What is the net present value and payback period

Assignment Help Financial Management

Reference no: EM132039919

ben is considering the purchase of new piece of equipment. the cost savings from the equipment would result in an annual increase in net income of $200000. the equipment will have an initial cost of $1200000 and have an 8 year life. the salvage value of the equipment is estimated to be $200000. the hurdle rate is 10%. what is accounting rate of return? b) what is the payback period? c) what is the net present value? d) what would the net pressent value be with the 15% hurdle rate? E) BASED ON THE NPV IN WHAT RANGE WOULD THE EQUIPMENT INTERNAL RATE OF RETURN FALL?

Reference no: EM132039919

Questions Cloud

How meaningful use may helped healthcare interoperability : 1st paragraph: Explain how meaningful use may have helped the increase in implementation of healthcare information technology.

Example of classical probability : Classify each statement as an example of classical probability, empirical probability, or subjective probability.

Calculate the present value of the perpetuity : Calculate the present value of the perpetuity at the beginning of the rst year.

Define what would you tell her : Caitlyn is a cross-country runner at her high school. She doesn't know much about nutrition, but she believes that the more protein in her diet.

What is the net present value and payback period : what is the payback period? what is the net present value? what is accounting rate of return?

Decide if the events are mutually exclusive : Decide if the events are mutually exclusive. Explain your reasoning. 1. Event A: Roll a 2 on a die. Event B: Roll a 5 on a die. 2.

What is the probability that the system survives for a time : A series system is one that needs all of its components to function in order for the system itself to be functional.

Depreciated for three years using three-years macrs method : The company would like to buy a machine for 20 mil. USD. Machine would be depreciated for 3 years using 3-years MACRS method.

What makes your favorite creature unique : What makes your favorite creature unique compared to other species? Are there any concerns about the population status of your species?

User Account

All Pages