What is the npv of the project

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Reference no: EM132981097

Question: Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $819,322, $863,275, $937,250, $1,019,612, $1,212,960, and $1,225,000 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment? Round to two decimal places.

-An investment of $83 generates after-tax cash flows of $44.00 in Year 1, $64.00 in Year 2, and $129.00 in Year 3. The required rate of return is 20 percent. The net present value is? Round to two decimal places.

-McKenna Sports Authority is getting ready to produce a new line of gold clubs by investing $1.85 million. The investment will result in additional cash flows of $525,000, $842,500, and $1,215,000 over the next three years. What is the payback period for this project? Round to four decimal places.

-Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project?

Year Project
0 ($11,368,000)
1 $ 2,172,589
2 $ 3,787,552
3 $ 3,150,650
4 $ 4,115,899
5 $ 4,556,424
Round to two decimal places.

Reference no: EM132981097

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