What is the rate of return of the acquisition

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Reference no: EM132021272

The XYZ Company is contemplating the purchase of a new milling machine. The purchase price of the new machine is $60 000 and its annual operating cost is $2 675.40. The machine has a life of 7 years, and it is expected to generate $15 000 in revenues in each year of its life. MARR is set at 20%.

a. What is the Rate of Return of the acquisition?

b. How much is the cash flow excess?

c. The NPV of the investment is.

d. Payback Period is.

Reference no: EM132021272

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