NPV Calculation Quiz
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Questions and Answers

Based on the information provided, what is the net present value (NPV) of the investment?

  • $1,225,000
  • $1,020,112 (correct)
  • $863,275
  • $937,250

    • What is the total cost of the new machine?

  • $4,133,250 (correct)
  • $1,225,000
  • $1,020,112
  • $937,250

    • What is the appropriate discount rate used in the calculation?

  • 12%
  • 18%
  • 10%
  • 15% (correct)

    • Which one of the following is the correct net present value (NPV) of the investment?

    <p>$105.00</p> Signup and view all the answers

    What is the total cash inflow from the investment after three years?

    <p>$245.00</p> Signup and view all the answers

    What is the internal rate of return (IRR) of the investment?

    <p>20%</p> Signup and view all the answers

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