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Woodfire Pizzeria is considering acquiring a new pizza oven The pizza oven would cost $126,175, including installation a

Posted: Sun Apr 17, 2022 7:09 pm
by answerhappygod
Woodfire Pizzeria Is Considering Acquiring A New Pizza Oven The Pizza Oven Would Cost 126 175 Including Installation A 1
Woodfire Pizzeria Is Considering Acquiring A New Pizza Oven The Pizza Oven Would Cost 126 175 Including Installation A 1 (30.39 KiB) Viewed 27 times
Woodfire Pizzeria is considering acquiring a new pizza oven The pizza oven would cost $126,175, including installation and shipping Woodfire estimated the new pizza oven would increase the company's cash inflows, net of expenses, by $35,000 per year. The pizza oven would have a five-year useful life and no salvage value Click here to view Exhibit 128.1 and Exhibit 128-2, to determine the appropriate discount factor(s) using table Required: 1. What is the pizza oven's internal rate of return? (Round your final answer to the nearest whole percentage.) 2. Using a discount rate of 12%, what is the pizza oven's net present value? 3. Suppose the new pizza oven would increase the company's annual cash inflows, net of expenses, by only $32,435 per year. Under these conditions, what is the internal rate of return? (Round your final answer to the nearest whole percentage.) 1. Internal rate of return 2 Not prosent value 3 Internal rate of return %