10.2) Net Present Value: Kingston Inc. is looking to add a new machine at a co

10.2) Net Present Value: Kingston Inc. is looking to add a new machine at a cost of $4133250. The company expects this equipment will lead
to cash flows of $814322 $863275 $937250 $1017112 $1212960 and $1225000 over the next six years. If the appropriate discount rate is 15 percent
what is the NPV of this investment?

10.6) Payback: Refer to Problem 10.5. What are the payback periods for production systems 1 and 2? If the systems are mutually exclusive
and the firm always chooses projects with the lowest payback period in which system should the firm invest?

>>> 10.5 :

Year

System 1

System 2

0

-15000

-45000

1

15000

32000

2

15000

32000

3

15000

32000