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Author Question: Book & Bible Bookstore desires to buy a new coding machine to help control book inventories. The ... (Read 140 times)

gbarreiro

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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. 

Required: 
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. 


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Marked as best answer by gbarreiro on Mar 6, 2021

bdobbins

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gbarreiro

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Reply 2 on: Mar 6, 2021
Excellent


Hdosisshsbshs

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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