Solution-Calculate payback period-profitability index for

Calculate payback period-profitability index for new machine

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Reference no: EM132652031

A new machine costing $140,000 will generate after-tax cash inflows of $60,000 per annum, for 6 years.

a) Calculate the payback period?

b) Find the NPV if the firm's cost of capital is 8%.

c) Calculate the profitability index for this new machine.

Reference no: EM132652031

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Calculate payback period-profitability index for new machine

Reference no: EM132652031

Reference no: EM132652031

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