Question: You purchase machinery for 23 958 that generates cash flow of
You purchase machinery for $23,958 that generates cash flow of $6,000 for five years. What is the internal rate of return on the investment?
Answer to relevant QuestionsThe cost of capital for a firm is 10 percent. The firm has two possible investments with the following cash inflows: a. Each investment costs $480. What investment(s) should the firm make according to net present value? b. ...An investment with total costs of $10,000 will generate total revenues of $11,000 for one year. Management thinks that since the investment is profitable, it should be made. Do you agree? What additional information would ...If the cost of capital is 9 percent and an investment costs $56,000, should you make this investment if the estimated cash flows are $5,000 for years 1 through 3, $10,000 for years 4 through 6, and $15,000 for years 7 ...BBP, Inc., with sales of $500,000, has the following balance sheet: The firm earns 15 percent on sales and distributes 25 percent of its earnings. Using the percent of sales, forecast the new balance sheet for sales of ...Given the following information, construct the firm’s cash budget for the given months and answer the questions. • All sales are for credit and collections occur after 30 days. • A $100,000 Treasury bill matures in ...
Post your question