Your management team has asked you to consider investing in a new piece of equip

Question

Your management team has asked you to consider investing in a new piece of equipment. The details of that investment opportunity are following:

The discount rate for this project is 5%.  Compute the following:

Your management team has asked you to consider investing in a new piece of equipment. The details of that investment opportunity are following: The discount rate for this project is 5%. Compute the following: Net Present Value Internal Rate of Return Would you recommend investing in this new piece of equipment? Explain and defend your position.

Explanation / Answer

NPV=$838.

IRR=5.1423%

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