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1. As part of its capital budgeting process, Haskins Inc. can purchase a new machine. The project's net investment (NINV) is $500 and must all

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1. As part of its capital budgeting process, Haskins Inc. can purchase a new machine. The project's net investment (NINV) is $500 and must all be paid today. Incremental net operating cashflows (NCF) from the day-to-day operation of the project are estimated as follows: NCF1 (End of Year 1) NCF2 (End of Year 2) NCF3 (End of Year 3) NCF4 (End of Year 4) $100. $125. $175 $180 At the end of year 4, the project ends. Terminal cashflows, assumed to be received at the end of year 4, are an additional $115. The required return (cost of capital) for Haskins is 17%, its marginal tax rate is 40%, and its dividend yield is 3%.. Show whether Haskins should accept the project

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