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A new start up company has contemplated investing $250,000 in new equipment. Their analysis has shown that this new machinery will generate the following cash

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A new start up company has contemplated investing $250,000 in new equipment. Their analysis has shown that this new machinery will generate the following cash flows: Annual Year Cashflow 10,000 2 30,000 40,000 VIAW 50,000 50,000 6 60,000 60,000 75,000 75,000 10 75,000 The minimum rate of return that they want to earn is 13% Based on these projections, please calculate the following for this project: Q1 Compute the present value? Q2 Compute the net present value? Q3 Compute the estimate for the IRR ? Q4 Should the company proceed with this investment? Use Interest Rate Table to solve for asnwering QI

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