Ltd Industrial are considering adding new manufacturing equipment to their many businesses

Accounting Nov 28, 2020

Ltd Industrial are considering adding new manufacturing equipment to their many businesses. The all in cost of the assets will be $15,000,000. The cost to finance the project is 10%. They expect to have a negative cash flow in year 1 of $1,000,000. They expect net after tax cash flows in years 2 of $6,000,000, year 3 of $5,500,000, year 4 of $4,000,000, and in year 5, the final year of the project, of $7,000,000

What is the NPV, IRR, Profitability Index and Payback?

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