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Assignment # 3: A manufacturing unit engaged in the production of automobile parts is considering a proposal of purchasing one of the two plants, details

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Assignment # 3: A manufacturing unit engaged in the production of automobile parts is considering a proposal of purchasing one of the two plants, details of which are given below: The annual costs of the two plants are as follows: Will it be advantageous to buy Plant A or Plant B? 1. Using IRR 2. NPV and 3. Profitability Index method Assume cost of capital is 20%

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