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Your company can purchase new equipment to save money on your utility bills. The cost of the equipment is $270,000, and the monthly savings will be $317. The equipment has an expected life of 25 years. Should you recommend this investment?

1. Calculate the payback period.

2. Calculate the discounted payback period at a rate of 1% (hint: annuity)

3. Calculate the Net Present Value at 1%.

4. Calculate the Internal Rate of Return.

5. Calculate the Profitability Index.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91616061

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