Calculate the cash payback period for the teaching robot

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Reference no: EM132524107

Retsac Company is considering an investment of $20,000 in an automated teaching robot. Retsac's cost of capital is 6%. Retsac anticipates the following net cash inflows from the teaching robot:

Year 1 $5,000

Year 2 $8,000

Year 3 $14,000

Year 4 $14,000

Question 1: Calculate the cash payback period for the teaching robot. Show your work.

Question 2: Calculate the net present value for the teaching robot. Use the appropriate table. Show your work.

Question 3: Calculate the profitability index for the teaching robot. Show your work.

Question 4: Calculate the internal rate of return for the teaching robot. Use Excel.

Reference no: EM132524107

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