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Blossom Corp. management is planning to convert an existing warehouse into a new plant that will increase its production capacity by 4 5 percent. The
Blossom Corp. management is planning to convert an existing warehouse into a new plant that will increase its production capacity by
percent. The cost of this project will be $ It will result in additional cash flows of $ for each of the next eight
years. The discount rate is percent.
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a What is the payback period? Round answer to decimal places, eg
The project's payback period is
years
b What is the NPV for this project? Round intermediate calculations and final answer to decimal places, eg Do not round discount
factor values. Enter negative amounts using either a negative sign preceding the number eg or parentheses eg
The project's NPV is $
c What is the IRR? Round answer to decimal places, eg
The project's IRR is
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