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A company is considering investing in new machinery. The machinery will cost $ 1 , 5 0 0 , 0 0 0 and will be
A company is considering investing in new machinery. The machinery will cost $ and will be depreciated using a year MACRS asset life. The new machinery will replace old machinery that has a book value of $ and market value of $ The company expects t sell units each year for the next years at a sales price per unit and a $ variable cash cost per unit. The company will incur $ in fixed cash operating costs each year. The company expects to sell the machinery at the end of year for $ What is the investment's IRR? Should the company make the investment? The company's tax rate is and the relevant cost of capital is
A company is considering investing in new machinery. The machinery will cost $ and will be depreciated using a year MACRS asset life. The new machinery will replace old machinery that has a book value of $ and market value of $ The company expects t sell units each year for the next years at a sales price per unit and a $ variable cash cost per unit. The company will incur $ in fixed cash operating costs each year. The company expects to sell the machinery at the end of year for $ What is the investment's IRR? Should the company make the investment? The company's tax rate is and the relevant cost of capital is
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