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2. Kiran Corporation is considering the acquisition of scanning equipment to mechanize its procurement process. The equipment will require extensive testing and debugging, as well

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2. Kiran Corporation is considering the acquisition of scanning equipment to mechanize its procurement process. The equipment will require extensive testing and debugging, as well as user training prior to its operational use. Projected cash flows are shown below. Year After-Tax Cash Inflow/(Outflow) 0 $(450,000) 1 $300,000) 2 $50,000 3 $250,000 4 $250,000 5 $250,000 Management anticipates the equipment will be sold at the beginning of year 6 for $50,000 when its book value is zero. Internal hurdle and effective tax rates are 10% and 12%, respectively. The project's Net Present Value and Profitability Index would be?[10 Marks]

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