The Zero Machine Company Is Evaluating a Capital Expenditure Proposal

question 138

Essay

The Zero Machine Company is evaluating a capital expenditure proposal that requires an initial
investment of $20,960 and has predicted cash inflows of $5,000 per year for 10 years.It will have no
salvage value.Required:
a.Using a required rate of return of 16%, determine the net present value of the investment proposal.
b.Determine the proposals internal rate of return.

---

Definitions:

Secondary Amenorrhea

The cessation of menstrual periods for three months or more after regular menstrual cycles have been established, not due to pregnancy, menopause, or other natural reasons.

Secondary Dysmenorrhea

Painful menstruation that is caused by an underlying disease, disorder, or structural abnormality in the reproductive organs.

Primary Endometrial Cancer

A type of cancer that originates in the lining of the uterus (endometrium), it is the most common form of uterine cancer.

Premenstrual Syndrome

A set of physical and emotional symptoms that some women experience before their menstrual period.