The Ohm Depot Co. is currently considering the purchase of a new machine that would increase the

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 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.

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...