A machine is expected to save €8 000, €12 000, €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 €25 500 at the end of each year for 6 years. The required rate of return is 10%. Find the profitability index PI.
A machine costs €20 000 today, lasts 5 years and costs €1 000 per year to run (paid at the end of each year). The cost of capital is 10%. Find its equivalent annual cost EAC.
An investment of €30 000 gives these cash flows at the end of years 1 to 3: €14 000, €11 000, €8 000. The cost of capital is 5%. Find the net present value NPV.
A project costs €10 000 and returns €4 500, €7 000, €7 000 at the end of years 1 to 3. Find its internal rate of return IRR in percent.
A project costs €25 000 and returns €9 000, €13 500, €18 500 at the end of years 1 to 3. Find its internal rate of return IRR in percent.
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