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A SMALL INDUSTRIAL PROJECT IS committed to an immediate payment of $90000 worth of machinery.equipment.and tools.Operating cost annually in the form of wages,fuel.power,and maintenance are
A SMALL INDUSTRIAL PROJECT IS committed to an immediate payment of $90000 worth of machinery.equipment.and tools.Operating cost annually in the form of wages,fuel.power,and maintenance are estimated at $6000 in year 1,$8000 in year 2,and $13000 in year 3,and $15000 in year 4,Annual operating cost will maintain that level.i.e., $15000 untill the end of the project's life. revenues are estimated at $15000 in year 1,$18000 in year 2,$25000 in year 3,and $35000 in year 4 and every year until the end of the project's life. The life of the project is 10 years. The cost of capital 8%,the salvage value of machinery,equipments,and tools is zero at the end of the project's life. Calculate NPV,B/C,and IRR
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