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2 A new start up company has contemplated investing $250,000 in new equipment. 3 Their analysis has shown that this new machinery will generate
2 A new start up company has contemplated investing $250,000 in new equipment. 3 Their analysis has shown that this new machinery will generate the following cash flows: 4 S Annual 6 Year: Cashflow 7 1 $ 10,000 8 2 $ 30,000 3 $ 40,000 10 4 $ 50,000 11 5 $ 50,000 12 6 $ 60.000 13 7 $ 60,000 14 15 9 16 868 $ 75.000 $ 75.000 10 $ 75,000 17 18 The minimum rate of return that they want to earn is 19 20 13% 21 Based on these projections, please calculate the following for this project: Q1 Compute the present value? 23 Q2 Compute the net present value? 24 Q3 25 Q4 22222222 26 27 28 29 Compute the estimate for the IRR ? Should the company proceed with this investment? Use Interest Rate Table to solve for asnwering Q1
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