Question
ABZ corporation's new project call for an investment of $100,000. it has an estimated life of 10 years. the IRR has been calculated to be
ABZ corporation's new project call for an investment of $100,000. it has an estimated life of 10 years. the IRR has been calculated to be 15 percent. if cash flows are evenly distributed and tax is 40 percent what is the annual before tax cash flow each year. and you are helping a manufacturing firm deceide whether it should invest in anew plant the initial investment is expected to be $50 million, and the plant is expected to generate after-tax cash flows of $50 million, a year for the next 20 years. there will be an additional investment of $20 million needed to upgraded the plant in 10 years. if the discount rate is 10% i) Estimate the Net present value of the project ii) should this project be accepted or rejected/ Explain your answer? iii) Estimate the Internal rate of return for this Project
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