A New Machine Will Cost $100,000 and Generate After-Tax Cash

question 81

Essay

A new machine will cost $100,000 and generate after-tax cash inflows of $356,000 for four years.Find the NPV if the firm uses a 12 percent opportunity cost of capital.What is the IRR? What is the payback period?

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Definitions:

Virtual Organization

Describes a network of independent organizations, resources, or individuals that function and appear as a single entity through the use of digital technologies.

Holacracy

A method of decentralized management and organizational governance, where decision-making is distributed to self-organizing teams rather than being centralized in a traditional management hierarchy.

Decentralized

The distribution of functions, powers, people, or things away from a central location or authority.

Self-Managing Teams

Self-Managing Teams consist of individuals who collaborate without the direct supervision of a manager, taking collective responsibility for their goals, processes, and outcomes.