Question: Use the chart to answer questions 4 a - 4 d : a . Set up the schedule of relevant cash flows. Remember: Relevant items
Use the chart to answer questions :
a Set up the schedule of relevant cash flows. Remember: Relevant items
are those that differ between alternatives and occur in the future.
Calculate the NPV in the last column.
b Calculate the payback period.
c Should the company buy the equipment based on the quantitative
analysis?
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