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Assume you are considering of making an investment today of $15,000,000.The investment is used to buy equipment and has an expected life of 10 years.Your
Assume you are considering of making an investment today of $15,000,000.The investment is used to buy equipment and has an expected life of 10 years.Your expected cash flow is $2,000,000 per year for 10 years.You also expect to sell the equipment at the end of ten years for $1,500,000.Assume that the ATWACOC is 12%.Determine the NPV and IRR of the project.Will you accept or reject the project?
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