FIN3403 Business Finance Quiz 3 Results University of Central
Florida
Score for this attempt: 18 out of 20
Submitted Nov 12 at 2:06pm
This attempt took 78 minutes.
pts
Question 1
You have purchased a canning machine for $5,000. You expect the machine to save your
company
$3,325 each year for the next 10 years. What is the NPV of the machine? Use a discount
rate of 10.8%.
Correct!
$14,747
Question 2 pts
By automating its shop floor, your company expects to save $81,000 annually. If the
automation costs
$225,000, what is the payback period of the automation?
Correct!
2.78
Question 3 pts
A new security system has a price-tag of $7,500, but should save your company $3,375
each year for the next 10 years in reduced thefts. What is the profitability index of the
, security system? Use a discount rate of 12.4%.
Florida
Score for this attempt: 18 out of 20
Submitted Nov 12 at 2:06pm
This attempt took 78 minutes.
pts
Question 1
You have purchased a canning machine for $5,000. You expect the machine to save your
company
$3,325 each year for the next 10 years. What is the NPV of the machine? Use a discount
rate of 10.8%.
Correct!
$14,747
Question 2 pts
By automating its shop floor, your company expects to save $81,000 annually. If the
automation costs
$225,000, what is the payback period of the automation?
Correct!
2.78
Question 3 pts
A new security system has a price-tag of $7,500, but should save your company $3,375
each year for the next 10 years in reduced thefts. What is the profitability index of the
, security system? Use a discount rate of 12.4%.
