Question: Question 4 3 Points Assuming the benchmark norm is 5.0% for the initial investment method. Would the company accept or reject the machine? Enter 1




Question 4 3 Points Assuming the benchmark norm is 5.0% for the initial investment method. Would the company accept or reject the machine? Enter 1 for accept or enter 2 for reject Blank 1 1 Blank 1 Add your answer Question 3 7 Points This data applies to questions 3 - 8: A company is looking to purchase a machine. The following information applies: Yr O Cost 80,000 Yr 1 Inflow 18,000 Yr 2 Inflow 40,000 Yr 3 Inflow 32,000 Yr 4 Inflow 4,000 Scrap 6,000 What is the ARR of the machine using the initial investment method? ARR = X% - You need to enter the figure for X. You should round your answer to one decimal place. Do not show a % sign. 6.3 Blank 1 6.3 Question 5 7 Points Calculate the ARR using the average investment method. ARR = X% - You should enter the figure for X. Do not enter a % sign. You should give your answer to one decimal place. = 7.2 Blank 1 Add your answer Question 6 3 Points Assuming the benchmark norm is 14.0% for the average investment method, should the company accept or reject the machine? Enter 1 for accept and 2 for reject. IN Blank 1 Add your answer Question 7 5 Points What is the payback period? The payback period is X years. You need to enter the figure for X. Round your answer to one decimal place. Enter the figure only. 3.4 Blank 1 Add your answer Question 8 7 Points Calculate the NPV using a discount rate of 3% You should round your answer to the nearest whole number. Do not insert any commas or a sign. 8030 Blank 1 Add your
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