Determine the npv of the new facility

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You are considering purchasing a new production facility to expand operations. The building and machinery will cost $800,000 and be depreciated over 10 years using the straight-line method with no salvage value at the end of the equipment-life. You require a 12% rate of return on the project.

Question 1: Determine the NPV of the new facility.

Question 2: Calculate the IRR (approximate).

Question 3: Calculate the payback period.

Question 4: Calculate the accounting rate of return.

Reference no: EM132957482

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