A machine is expected to save €12 000, €6 000, €5 000 at the end of years 1 to 3, after which it is worthless. The required return is 6%. What is the most the company should pay for the machine today? Find PV.
A project costs €80 000 today and returns €41 500 at the end of each year for 3 years. The required rate of return is 9%. Find the net present value NPV.
A project costs €200 000 today. It generates €16 000 at the end of the first year, and the cash flow then grows by 1% per year forever. The cost of capital is 11%. Find the net present value NPV.
A machine costs €40 000 today. It generates €10 500 at the end of each year for 5 years and can then be sold for €6 000. The cost of capital is 8%. Find the net present value NPV.
A project costs €50 000 today. Its cash flow is €5 500 at the end of year 1 and grows by 3% per year until the last cash flow at the end of year 8. The cost of capital is 12%. Find the net present value NPV.
A project costs €10 000 and returns €5 500, €7 000 at the end of years 1 to 2. Find its internal rate of return IRR in percent.
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