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An agribusiness has the opportunity to invest in new energy saving equipment that will generate annual savings of $150,000 per year for the next 28 years. The equipment costs $535,185. The firm normally earns 12 percent on its capital investments.

Determine the net present value (NPV) for this investment.

Determine the benefit-cost ratio for this project.

Determine the payback period for this investment.

Determine the internal rate of return (IRR) for this project.

Determine the equivalent annual cost (EAC) for this project.

Please show all work and calculation for each of the above questions.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91590141

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