Question

Roberts Company is considering an investment in equipment that is capable of producing more efficiently than the current technology. The outlay required is $2,293,200. The equipment is expected to last five years and will have no salvage value. The expected cash flows associated with the project are as follows:
Required:
1. Compute the project’s payback period.
2. Compute the project’s accounting rate of return.
3. Compute the project’s net present value, assuming a required rate of return of 10 percent.
4. Compute the project’s internal rate of return.


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  • CreatedSeptember 01, 2015
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