Business, 20.12.2019 21:31 cherokeesiouxw72
Nova products has a 44-year maximum acceptable payback period. the firm is considering the purchase of a new machine and must choose between two alternatives.
the first machine requires an initial investment of $26 comma 00026,000 and generates annual after-tax cash inflows of $6 comma 0006,000 for each of the next 1010 years.
the second machine requires an initial investment of $29 comma 00029,000 and provides an annual cash inflow after taxes of $8 comma 0008,000 for 2828 years.
a. determine the payback period for each machine.
b. comment on the acceptability of the machines, assuming that they are independent projects.
c. which machine should the firm accept? why?
d. do the machines in this problem illustrate any of the weaknesses of using payback?
Answers: 1
Business, 21.06.2019 16:30, lishalarrickougdzr
ernst's electrical has a bond issue outstanding with ten years to maturity. these bonds have a $1,000 face value, a 5 percent coupon, and pay interest semiminusannually. the bonds are currently quoted at 96 percent of face value. what is ernst's pretax cost of debt?
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1. is the act of declaring a drivers license void and terminated when it is determined that the license was issued through error or fraud.
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Business, 22.06.2019 16:00, ari313
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Nova products has a 44-year maximum acceptable payback period. the firm is considering the purchase...
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