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QUESTION 1-5.docx

View QUESTION 1-5.docx from FINANCE MISC at University of Nairobi. machine would be depreciated (straight line) down to $0 over its five year life. At theend of five years it is believed that the

1 .   What is the Internal Rate of Return of this machine ?
 20.81 % 19.19 % 20.19 % 19.81 %
QUESTION 11.QUESTIONS 1 – 3 GO WITH THE FOLLOWING PROBLEM:Builtrite has estimated their cost of capital is 14% and they are considering the purchase of a machine with the following capital budget:Initial Investment $62,000RATFCF Year 1$22,000RATFCF Year 2$30,000RATFCF Year 3 $38,0002.What is the machine’s NPV? $5,783$6,014$4,824$5,442
1 points QUESTION 21.What is the Profitability Index (PI) of this machine?
1 points QUESTION 3
1.What is the Internal Rate of Return of this machine?
1 points QUESTION 41.QUESTIONS 4 – 5 GO WITH THE FOLLOWING INFORMATION:Builtrite is considering purchasing a new machine that would cost $60,000 and the

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