A firm can purchase new equipment for initial investment

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Reference no: EM13927869

A firm can purchase new equipment for 16000.00 initial investment. The equipment generates an annual after tax cash inflow of 7000.00 for 4 years. Assuming that the firm has a cost of capital of 14%

1. The NPV of the new equipment rounded to nearest cent is .....

2 based on NPV is the new equines acceptable Answer yes or no

3. The maximum required rate of return the firm can have and still accept the new equipment is ....% ( round to two decimal places)

Reference no: EM13927869

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