Corporate FInace Assignment/ Professional Essay Writers
May 15th, 2020
Kingston Corp. is considering a new machine that requires an initial investment of $750,000 installed and has a useful life of 15 years. The expected annual after-tax cash flows for the machine are $97,000 for each of the 15 years and nothing thereafter.
a. Calculate the net present value of the machine if the required rate of return is 13 percent.
b. Calculate the IRR of this project.
C. Should Kingston accept the project (assume that it is independent and not subject to any capital rationing constraint)? Explain your answer. Get Finance Help Today
Don't use plagiarized sources. Get Your Assignment on
Corporate FInace Assignment/ Professional Essay Writers
Just from $13/Page