Finding the npv irr and payback periodbook amp bible

Assignment Help Financial Accounting

Reference no: EM13355792

Finding the NPV, IRR and payback period.

Book & Bible Bookstore desires to buy a new coding machine to help control book inventories. The machine sells for $36,586 and requires working capital of $4,000. Its estimated useful life is five years and will have a salvage value of $4,000. Recovery of working capital will be $4,000 at the end of its useful life. Annual cash savings from the purchase of the machine will be $10,000.

a. Compute the net present value at a 14% required rate of return.

b. Compute the internal rate of return.

c. Determine the payback period of the investment.

Reference no: EM13355792

Questions Cloud

Allocation of operating costs using single-rate : allocation of operating costs using single-rate cost-allocation method.the ac corporation operates one central plant

Adjusted budget for appraisal costs and internal failure : adjusted budget for appraisal costs and internal failure costs.tq products is committed to its quality program. it

Calculation of average waiting time and expected monthly : calculation of average waiting time and expected monthly margin.trikes unlimited makes small motorcycles. the monthly

Npv of purchasing the new machineskates company is : npv of purchasing the new machine.skates company is interested in replacing a molding machine with a new improved

Finding the npv irr and payback periodbook amp bible : finding the npv irr and payback period.book amp bible bookstore desires to buy a new coding machine to help control

Journal entries for warranty repairs12102009 paid 12350 for : journal entries for warranty repairs.1.2102009 paid 12350 for warranty repairs originally accrued in 2008.dateaccount

Journal entries for sold merchandise inventory12182009 sold : journal entries for sold merchandise inventory.1.2182009 sold 600000 merchandise inventory on account.nbsp all sales

Activity in your organization where you can apply breakeven : activity in your organization where you can apply breakeven analysis.the organizations i chose is best buyidentify any

Identify two relevant and two non-relevant costsidentify a : identify two relevant and two non-relevant costs.identify a decision that has recently been made or will be made in the

User Account

All Pages