(b) 1. Payback period = Investment / Annual cash inflows
= 500000 / 165000
= 3.03 years
2. Net present value = Present value of cash inflows PVIA(20%, 5) - Investment
= 165000*2.991 - 500000
= $-6485
Question 2 Partially correct Mark 1.00 out of 3.00 P Flag question Payback Period and NPV:...
Question 3 Incorrect Mark 0.00 out of 3.00 P Flag question NPV: Taxes and Accelerated Depreciation Assume that United Technologies is evaluating a proposal to change the company's manual design system to a computer-aided design (CAD) system. The proposed system is expected to save 10,000 design hours per year; an operating cost savings of $40 per hour. The annual cash expenditures of operating the CAD system are estimated to be $200,000. The CAD system requires an initial investment of $500,000....
Question 3 Incorrect Mark 0.00 out of 3.00 P Flag question NPV: Taxes and Accelerated Depreciation Assume that United Technologies is evaluating a proposal to change the company's manual design system to a computer-aided design (CAD) system. The proposed system is expected to save 10,000 design hours per year; an operating cost savings of $40 per hour. The annual cash expenditures of operating the CAD system are estimated to be $200,000. The CAD system requires an initial investment of $500,000....
10 correct Mark 0.00 out of 100 p Page NPV: Taxes and Accelerated Depreciation Assume that United Technologies is evaluating a proposal to change the company's manual design system to a computer-aided design (CAD system. The proposed system is expected to save 10.000 design hours per year, an operating cost savings of $50 per hour. The annual cash expenditures of operating the CAD system are estimated to be $250,000. The CAD system requires an initial investment of $500,000. The estimated...
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