Tco 9 harry corp buys equipment for 194000 that will last


TCO 9) Harry Corp buys equipment for $194,000 that will last for 9 years. The equipment will generate net cash flows of $36,000 per year and will have no salvage value at the end of its life. Ignore taxes. Use a 10% required rate of return.

(a) What is the Net Present Value (NPV) of this investment?
(b) What is the Internal Rate of Return (IRR) of this investment? 
(c) What is the payback period?

 

 

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Finance Basics: Tco 9 harry corp buys equipment for 194000 that will last
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