The machine will have a 12-year useful life and no salvage, Ask an Expert

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Ernie has shopped for machines and found that the machine he wants will cost $131,000. In addition, Ernie estimates that the new machine will increase the company's annual net cash inflows by $21,200. The machine will have a 12-year useful life and no salvage value. Instructions (a) find out the cash payback period. (b) find out the machine's internal rate of return. (c) find out the machine's net present value using a discount rate of 10%.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M981027

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