Calculate the payback period for the new machine

Reference no: EM131763879

Question: Gabriella Vazquez Co. proposed to purchase a new machine, the new machine will save the company$100,000 a year, and the total investment in the new machine is going to be $650,000, the new machinewill have 10 years useful life with $32,000 residual value. The required rate of return is 16%.

1. Calculate the payback period for the new machine.

2. What is the NPV for the project?

3. Determine the IRR of the project.

Reference no: EM131763879

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