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Anatomy of a Fall Company is considering the following project. Cost of depreciable machinery for project. Earning Before Depreciation and Taxes ( EBDT ) Life

"Anatomy of a Fall" Company is considering the following project.
Cost of depreciable machinery for project.
Earning Before Depreciation and Taxes (EBDT)
Life in years
Tax rate
Cost of Capital
Gain or (Loss) at end of project from decommission.
A What is the NPV?
What is the IRR?
Should they do the project? Why?
B Approximately what would the Earnings before Depreciation and Taxes (EBDT) be if the IRR
were:
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