A project costs €20 000 today and returns €6 000, €3 500, €7 500, €3 500 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.
A machine is expected to save €6 000, €20 000, €8 000 at the end of years 1 to 3, after which it is worthless. The required return is 9%. What is the most the company should pay for the machine today? Find PV.
A project costs €40 000 today and returns €13 500 at the end of each year for 5 years. The cost of capital is 6%. Assume cash flows arrive evenly through each year. Find the discounted payback period DPB in years.
A machine costs €60 000 today, lasts 9 years and costs €5 000 per year to run (paid at the end of each year). The cost of capital is 6%. Find its equivalent annual cost EAC.
Project A costs €40 000 and returns €23 000, €15 000, €9 500 at the end of years 1 to 3. Project B costs €50 000 and returns €13 000, €20 000, €25 500. Find the crossover rate r* at which both projects have the same NPV, in percent.
A project costs €40 000 and returns €17 500, €28 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.
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