stuck on this one too?
stuck on this one too?
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Problem 1
(10 points)
Required:
In the space below, describe the net present value method of capital budgeting.
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Problem 2
(40 points total)
2013
2014
2015
2016
2017
Incremental revenue
6,000
2,000
4,000
2,000
1,000
Cost of new machine
12,000
Required:
Compute the average annual cash inflows. (20 points)
Compute the payback period using the accumulation method. (20 points)
