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ABC Corporation has a machine that requires repairs or should be replaced. ABC has evaluated the two options and calculated the cash flows resulting from

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ABC Corporation has a machine that requires repairs or should be replaced. ABC has evaluated the two options and calculated the cash flows resulting from each option as follows: Ootion A: Rebair the Machine nntion R Ru a naw Machine WRITING PART: Submission format: Word Document You have recently been hired by XYZ corporation and your first assignment is to help them decide which of these two options should be pursued. You would like to apply the capital budgeting and Time Value of Money concepts you have learnt in FIN 301 to analyze the solution and present it to your boss in three days. Conduct the analysis and calculate Payback period for each option, IRR of each option and PI and NPV for each option at four Discount Rates ( R ) of 9%,12%,15%,18%,21% Write a memo to your boss, explaining the results of your analysis, your decision and include a table and a chart showing your analysis. Make sure to compare IRR in your decision making. Make sure to discuss changing NPV values at different discount rates and how it impacts your decision in choosing the project. Compute NPV and PI for each option using disccount rates: #89101112 NPV Profile chart with R on X Axis and NPV on Y axis (Two lines one each for NPV A and NPV B) A One page professional memo written in MS Word explaining your decision betwwen options A and B

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