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Builtrite has estimated their cost of capital is 14% and they are considering the purchase of a machine with the following capital budget: Initial Investment
Builtrite has estimated their cost of capital is 14% and they are considering the purchase of a machine with the following capital budget:
| Initial Investment | $62,000 |
| RATFCF Year 1 | $22,000 |
| RATFCF Year 2 | $30,000 |
| RATFCF Year 3 | $38,000 |
What is the machines NPV?
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Value And Capital Management A Handbook For The Finance And Risk Functions Of Financial Institutions
Authors: Thomas C. Wilson
1st Edition
1118774639, 978-1118774632
