SolarStar has decided to invest in a new robotic technology for solar energy equipment in their new solar-powered generators.

SolarStar has determined to put money into a brand new robotic expertise for photo voltaic vitality gear of their new solar-powered mills.

SolarStar has determined to put money into a brand new robotic expertise for photo voltaic vitality gear of their new solar-powered mills. They’ve been supplied the next choice by a big robotics producer.Value: $15 millionSolarStar expects the next after-tax money flows ensuing from their skill to extend their costs and in addition to their quantity of future gross sales:12 months 1: $5 millionYear 2: $four millionYear three: $three millionYear four: $2 millionYear 5: $2 millionYear 6: $2 millionYear 7: $1 millionYear eight: $1 millionYear 9: $1 millionAnswer the next questions primarily based on the knowledge given.If their low cost fee/required fee of return is 7%, what’s the web current worth of the acquisition?Ought to they buy the expertise?What’s the payback interval?If the criterion is that the undertaking should pay again by 5 years, ought to the corporate buy the expertise?

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