2013 2014 2015 2016 2017 6000 2000 4000 2000 1000 12000 Problem 1 Problem 2 (10 points) (40 points total) Cost of new machine Required: In the space below, describe the net present value method of capital budgeting. Required: Compute the average annual cash inflows. (20 points) Compute the payback period using the accumulation method.
2013 2014 2015 2016 2017 6000 2000 4000 2000 1000 12000 Problem 1 Problem 2 (10 points) (40 points total) Cost of new machine Required: In the space below, describe the net present value method of capital budgeting. Required: Compute the average annual cash inflows. (20 points) Compute the payback period using the accumulation method. (20 points) Incremental revenue ?????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????????
Attachments:
1.xlsx