Marvin Industries must choose between an electric-powered and a coal-powered forklift machine for its factory. Because both machines perform the same function, the firm will choose only one. (They are mutually exclusive investments.) The electric-powered machine will cost more, but it will be less expensive to operate; it will cost $102,000, whereas the coal-powered machine will cost $69,500. The cost of capital that applies to both investments is 10%. The life for both types of machines is estimated to be 6 years, during which time the net cash flows for the electric-powered machine will be $26,150 per year, and those for the coal-powered machine will be $20,000 per year. Annual net cash flows include depreciation expenses. Calculate the NPV for each type of truck. Round your answers to the nearest dollar.
Electric-powered truck $
Gas-powered truck $
Calculate the IRR for each type of truck. Round your answers to two decimal places.
Electric-powered truck %
Gas-powered truck %

$11,890

13.89%

$17,605

18.25%

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

NPV can be calculated using a financial calculator

The electric-powered machine

Cash flow in year 0 = $-102,000

Cash flow in year 1 to 6 = $26,150  

I = 10 %

NPV = $11,890

IRR = 13.89%

the coal-powered machine

Cash flow in year 0 = $-69,500

Cash flow in year 1 to 6 = $20,000

I = 10 %

NPV = $17,605

IRR = 18.25%

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.

answer; niosh, the national institute for occupational safety and health;