Question: HI, I need help calculating the payback method, NPV and the IRR for each of the following 2 pieces of equipment and based on the

HI, I need help calculating the payback method, NPV and the IRR for each of the following 2 pieces of equipment and based on the findings, deciding whether or not the purchase of the new equipment is a worthwhile investment.

Existing Equipment

Original Cost

60,000

Present Book Value

30,000

Annual Cash Operating Costs

145,000

Current Market Value

15,000

Market Value in Ten Years

Remaining useful Life

10 years

Replacement Equipment

Cost

600,000

Annual Cash Operating Costs

50,000

Market Value in Ten Years

Useful Life

10 years

Other Information

Cost of Capital

10%

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