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Assume that a company is considering a capital investment project with a four year time horizon and the following cash flows. Cost of new equipment

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Assume that a company is considering a capital investment project with a four year time horizon and the following cash flows. Cost of new equipment Working capital required Annual net cash inflows Maintenance and repairs in third year Salvage value of equipment in fourth year $210,000 $ 50,000 $100,000 $ 40,000 $ 25,000 Click here to view Extulbul 1984 and Exhult 148.2 to cetermines the appropriate discount factors) usuldg the tobles provided. The working capital will be released at the end of the project and the company's required rate of return is 14%. The nel present value of the project is closest to: Multiple Choice 0548700 O $68.600 Activate w 7 Assume that a company choosing between two alternative wasting water replace with a machine. The cociated with the two alternatives are summarized in forows Nee 2 Existi Machine Machine $ 15,000 $20,000 $ 5,000 $5,000 $ 30,50$ 7,000 $ 2.000 $ 1.000 $6.000 Purchase cost (new) Remaining book value Overhaul needed now Annual cash operating costs Salvage value (now) Salvage value (eight years from now) 00.00.20 Click here to view Ext 1 2. to determine the copropraleiscount factors using the sales provided the company overhaul is sting machine. It wil be able for eight more years, buy the wachine. It wil bested for eight years.donare present value and with a discount rate of 14% is the tinandal advantage disadvantage of replacing the existing machine with so machine mote Chance SOR Ned> 724 6:46 6715001

724 6:46 6715001

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