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Determine terra payback period

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Reference no: EM132711298

Bullock Prosthetics is planning to buy 3-D printing machinery costing $380,000. This machinery's expected useful life is 5 years. They require a minimum rate of return of 8%, and have calculated the following data pertaining to the purchase and operation of this machinery:

Year

Estimated Annual
Inflows

Estimated Annual Cash Outflows

Depreciation

1

$ 90,000

$15,000

$60,000

2

$150,000

$45,000

$60,000

3

$230,000

$95,000               I $60,000

4

$270,000

$110,000

$60,000

5

$300,000

$125,000

$60,000

Problem 1. Determine Terra's payback period, accounting rate of return, and NPV for this investment?

 

Reference no: EM132711298

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