Supreme Standard is considering a new machine which will reduce net cash inflow by $20000 in the

Question:

Supreme Standard is considering a new machine which will reduce net cash inflow by $20000 in the current year, but increase net cash inflow by $4000, $6000, $8000, $10000, $12000 and $14000 in the following six years.
a. If the entity's is 10 per cent, should it buy the machine?
b. If the entity's is 20 per cent, should it buy the machine?
c. What is the IRR for the machine?
d. Advice management on the purchase of the machine? Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...