Nucore Company is thinking of purchasing a new candy wrapping machine at a cost of $370,000. The machine should save the company approximately $70,000 in operating costs per year over its estimated useful life of 10 years. the salvage value at the end of the 10 years is expected to be $15,000.
1. What is the machine's payback period?
2. What is the net present value of the machine if the cost of capital is 12%
3. What is the expected internal rate of return for this machine?© BrainMass Inc. brainmass.com May 20, 2020, 3:51 pm ad1c9bdddf
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Excel file contains calculations of payback period, net present value and internal rate of return.