Question: (Spreadsheet is the only acceptable submission format) 1. You are interested in buying a new machine that will increase the firm's revenues and decrease its
(Spreadsheet is the only acceptable submission format) 1. You are interested in buying a new machine that will increase the firm's revenues and decrease its costs. The machine costs $125,000 today (time zero). It will provide positive cash flows of $55,000 in year 1,$35,000 in year 2 and $60,000 in year 3 . The firm's required rate of return (WACC or k) is 10%. Calculate the NPV, IRR and payback period of the investment. Should we invest
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