Latin Cuisine is considering the purchase of new food processing technology, which would cost ($ 1,800,000) and
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Latin Cuisine is considering the purchase of new food processing technology, which would cost \(\$ 1,800,000\) and would generate \(\$ 300,000\) in annual cost savings. No salvage is expected on the technology at the end of its 10 -year life. The firm's cost of capital and discount rate are both 10 percent.
a. Calculate the internal rate of return for the project. Does the IRR indicate the project is acceptable?
b. What qualitative factors should the company consider in evaluating the investment?
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Related Book For
Cost Accounting Foundations And Evolutions
ISBN: 9781618533531
10th Edition
Authors: Amie Dragoo, Michael Kinney, Cecily Raiborn
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