Selected Answers for Exercises in the Case.
1. Selected Answers to Exercise 1 Parts A, B, C
Project Payback IRR NPV Decision (Buy?)
Evaluated
A Machine Only 7 years ? ? ?
B Machine with ? 12.86% ? ?
Service contract
C Enhance Machine ? ? +$15,000 YES
2. Selected Answers to Summary to Solutions to Exercise 2
Project IRR NPV
Add a new window 34.6% ???
Update existing equipment ? $2,514
Build a new stand 31.2% ???
Rent a larger stand ? $28,470
3 Selected Answers to Summary to Solutions to Exercise 3
Type of Subsidy Year 0 1 2 3 4 Cost to City
Increase IRR to 25% $122,101 ? ? &nb ...