A machine is expected to save €12 000, €10 000, €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 machine is expected to save €6 000, €15 000, €15 000 at the end of years 1 to 3, after which it is worthless. The required return is 12%. What is the most the company should pay for the machine today? Find PV.
A machine costs €50 000 today, lasts 7 years and costs €3 000 per year to run (paid at the end of each year). The cost of capital is 10%. Find its equivalent annual cost EAC.
A machine costs €30 000 today, lasts 10 years and costs €3 000 per year to run (paid at the end of each year). The cost of capital is 5%. Find its equivalent annual cost EAC.
Project A costs €30 000 and returns €17 000, €11 500, €6 000 at the end of years 1 to 3. Project B costs €32 000 and returns €8 500, €12 000, €16 500. Find the crossover rate r* at which both projects have the same NPV, in percent.
A project costs €40 000 and returns €18 000, €12 500, €17 000, €16 500 at the end of years 1 to 4. Cash flows can be reinvested at the cost of capital of 10%. Find the modified internal rate of return MIRR in percent.
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