Solution-Calculate the net present value of the dock

Calculate the net present value of the dock

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Reference no: EM132956913

Problem - Bilgewater Inc. is considering investing in a new clock that will cost $510,000. The company expects to use the dock for 5 years. The company anticipates annual cash flows of $140,000 resulting from the new clock. The company's discount rate 10%.

a) Calculate the cash payback on the dock.

b) Calculate the net present value of the dock.

c) Calculate the internal rate of return (IRR) of the dock.

d) Should the company make this investment? In light of your analysis above explain your decision.

Reference no: EM132956913

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Calculate the net present value of the dock

Reference no: EM132956913

Reference no: EM132956913

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