• 2022-06-06
    The net present value of the costs of operating a machine for the next three years is $10,724 at a cost of capital of 15%. What is the equivalent annual cost of operating the machine?
    A: $4697
    B: $3575
    C: $4111
    D: $3109
  • A

    内容

    • 0

      The cost of a new machine is $250,000. The machine has a five-year life and no salvage value. If the cash flow each year is equal to 25 percent of the cost of the machine, calculate the payback period for the project. A: 2.0 years B: 2.5 years C: 3.0 years D: 4.0 years

    • 1

      EVA = adjustedafter-tax operating income – (cost of invested capital – a percentage xadjusted average invested capital).

    • 2

      中国大学MOOC: Decker Company can purchase a new machine at a cost of $104,320 that will save $20,000 per year in cash operating costs. The machine has a 10-year life. Future cash flows are the same every year. What’s the IRR in this example?

    • 3

      The book value of an old machine is always considered an opportunity cost in a decision.

    • 4

      Though it had promise, in the end the project failed for three reasons: the cost of building the _____________ machine;