Question: Problem 5 Net Present Value and Payback - 10 points tem that dering the purch Advanced Products is considering the purchase of a computer- manufacturing
Problem 5 Net Present Value and Payback - 10 points tem that dering the purch Advanced Products is considering the purchase of a computer- manufacturing system that requires an initial investment of $750,00 and is expected to provide average annual cash benefits and savings of $150,000 for the next 4 years. Their current cost of capital is 107 Required: Compute the net present value of the investment. Following are selected factors from tables for 4 years at 10% FV of SI FVOA PV of $1 PVOA 1.4641 4.641 0.68301 3.16987 Compute the payback period of the investment. Evaluate the investment
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