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A project requires an initial investment of $1,000,000 to purchase equipment and it is expected to use for 5 yrs. The company expects to have
A project requires an initial investment of $1,000,000 to purchase equipment and it is expected to use for 5 yrs. The company expects to have $200,000 profit every year after installing this equipment. Assume that the inflation rate is 3% and IRR is 17%. a) What is the total NPV with discount rate? b) Do you want to perform this project? Why or why not? For full credit, please complete the following table as seen in the lecture note and decide if you want to perform this project
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