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 4a-4d :
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?
 Use the chart to answer questions 4a-4d : a. Set up

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