Revenue 6600000 1 computatio salvage revenue 40000 2

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Revenue6,600,0001. ComputatioSalvage Revenue40,0002. ComputatioCash outflows282,4003. ComputatioInvestment142,000Annual Depreciation20,400Operating costs120,000Total Cash Flows6,357,600Net Present Value5,941,682.24 CHFDiscount rate (7%)7%OPTION 2. FINANCE THE PURCHASE OF A NEW CNC MACHINECash inflows6,640,000Computation Revenue6,600,0001. ComputatioSalvage Revenue40,0002. ComputatioCash outflows203,6813. ComputatioInicial investment50,000Annual Depreciation7,280Cost of Goods sale1Operating costs120,000Payments26,400Total Cash Flows6,436,319Net Present Value6,015,251.40 CHFDiscount rate (7%)7%OPTION 3. ADD A THIRD SHIFTCash inflows6,600,000Computation Revenue6,600,0001. ComputatioCash outflows144,0002. ComputatioOperating costs144,0003. ComputatioTotal Cash Flows6,456,000Net Present Value6,033,644.86 CHFDiscount rate (7%)7%2.
of payback period:on of net annual cash inflo5,962,082.24 CHFon of investment:102000on of payback period:0.02 years(=) 7,3 daysof payback period:on of net annual cash inflo6,022,531.40 CHFon of investment:36,400on of payback period:0.01 years(=) 3,65 daysof payback period:on of net annual cash inflo6,033,644.86 CHFon of investment:6,456,000on of payback period:1.07 years

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