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ABC Manufacturing Corporation is considering an investment in new robotics equipment. The initial cost of the investment would be $650,000. The new equipment would generate

ABC Manufacturing Corporation is considering an investment in new robotics equipment. The initial cost of the investment would be $650,000. The new equipment would generate additional cash flows of $100,000 per year for the first 5 years, then $80,000 per year for the next 5 years. ABC's cost of capital or required rate of return on this type of investment is 9%. Using the Payback, NPV, IRR, and Profitibility Index, would you recommend that ABC pursue this project?

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