the extra credit question

I need your help with a capital budgeting decision at my job. We are looking into getting floor scrubbers for several of our high-rise apartment buildings. It’s estimated that these new floor scrubbers will end up saving the company 75 man hours per year. The cost of one man hour is $25 and is expected to increase by 2% per year over the life of the project. The floor scrubbers cost $11,000 in total and are projected to have a useful life of around seven years with a with a salvage value of $1,000. Maintenance on these scrubbers is expected to cost $200 in the first year and is expected to increase by 1% per year over the life of the project. Our required rate of return at the company is 8%. What is the Net Present Value of the Project? What is the IRR? Should we accept this project?

6 points for laying the problem out correctly

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

3 points for answering each of my questions correctly