Question: ABCs discount rate( interest rate ) for evaluating capital expenditures: 18% $ Vendor - Drum Solutions: Drum Solutions produces high-quality industrial equipment. Cash price Annual
ABCs discount rate( interest rate ) for evaluating capital expenditures: 18%
$ Vendor - Drum Solutions: Drum Solutions produces high-quality industrial equipment. Cash price Annual increase in sales revenue due to manufacturing high-quality drums Annual savings by manufacturing shells rather than purchasing shells Equipment's life expectancy (years) 490,000 95,000 35,000 10a) For each vendor determine the following: Cash Payback Net Present Value Profitability Index Internal Rate of Return
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