A project costs €50 000 today and returns €19 000, €19 500, €17 000, €16 500 at the end of years 1 to 4. Assume cash flows arrive evenly through each year. Find the payback period PB in years.
A project costs €50 000 today and returns €26 000 at the end of each year for 3 years. The required rate of return is 10%. Find the net present value NPV.
A machine costs €80 000 today, lasts 10 years and costs €1 500 per year to run (paid at the end of each year). The cost of capital is 5%. Find its equivalent annual cost EAC.
A machine costs €20 000 today, lasts 8 years and costs €1 500 per year to run (paid at the end of each year). The cost of capital is 8%. Find its equivalent annual cost EAC.
An investment of €50 000 returns €15 000 at the end of each year for 5 years. Find its internal rate of return IRR in percent.
A project costs €50 000 today. Its cash flow is €12 000 at the end of year 1 and grows by 2% per year until the last cash flow at the end of year 5. The cost of capital is 10%. Find the net present value NPV.
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