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Find the net present value and internal rate of return

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Question - The Lansford Office Equipment Co. is considering the purchase of a new machine that would increase the speed of manufacturing electronic equipment and save money. The net cost of the new machine is $ 68,000. The annual cash flows have the following projections:

Year - Amount

1 - $20,000

2 - 28,000

3 - 30,000

4 - 14,000

5 - 11,000

If the cost of capital is 10 percent, find the following:

A. The Net Present Value

B. The Internal Rate of Return

C. The Payback Period.

Reference no: EM132228123

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