Q. A machine has a first cost of $100,000 (in today's dollars) and a salvage value of $40000 (in current dollars) at the end of a five-year life. The machine will provide after tax cash flow of $30,000 (in current dollars) per year over its life of five years.
1. Calculate the following: Payback Period
2. Calculate the following: Project Net Present Worth @15%
3. Calculate the following: Rate of Return
4. Calculate the following: Net Present Value Index (@15%)