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 March 21, 2019, 3:16 pm ad1c9bdddf
Please see attachment for detailed response to your ...
Excel file contains calculations of payback period, net present value and internal rate of return.