Question: The Ohm Depot Co. is currently considering the purchase of a new machine that would increase the speed of manufacturing electronic equipment and save money.

The Ohm Depot Co. is currently considering the purchase of a new machine that would increase the speed of manufacturing electronic equipment and save money. The net cost of the new machine is $66,000. The annual cash flows have the following projections:

If the cost of capital is 10 percent find the following:
a. The PVB = $86,000.77 as shown below.
b. The NPV.
c. The IRR.
d. Payback.
e. PI.

21 29 36 16 8 12345

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a b NPV PV Benefits PV Costs NPV 8600077 66000 2000077 c The IRR is 2254 as show... View full answer

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