Question: Peach Co. spends $630,000 for a new catnip sorting machine with a residual value of $0. Peach Co. expects net cash inflows of $160,000 per
Peach Co. spends $630,000 for a new catnip sorting machine with a residual value of $0. Peach Co. expects net cash inflows of $160,000 per year for the next 12 years. What is the payback period?
Round your answer to 2 d.p.
Peach Co. spends $680,000 for a new catnip sorting machine with a residual value of $0. Peach Co. expects net cash inflows of $140,000 per year for the next 12 years. Assuming a 5% discount rate, what is the machine's NPV?
Round your answer to the nearest whole dollar.
Peach Co. is considering purchasing a new tractor to harvest their premium catnip. The new tractor would cost $646,100 and have a useful life of 14 years and no salvage value. The tractor would allow more catnip to be harvested and increase sales revenue by $276,000 per year and cash operating expenses by $124,000 per year. What is the simple rate of return, ignoring income taxes. Assume Peach Co. uses straight-line depreciation.
Round your answer to 2 d.p. as a percent. For example, if you believe the answer is 10.7%, enter 10.7
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