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Blossom Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are
Blossom Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the
resulting cash flows are shown in the accompanying table. The firm uses an percent discount rate for projects like this.
What is the NPV of this project? Enter negative amounts using either a negative sign preceding the number eg or parentheses eg
Do not round discount factors. Round other intermediate calculations and final answer to decimal places, eg
The NPV is $
Should management go ahead with the project?
The firm should
the project.
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