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Caleb Love Company is considering the following project. Cost of depreciable machinery for project. Earning Before Depreciation and Taxes (EBDT) Life in years Tax
"Caleb Love" Company is considering the following project. Cost of depreciable machinery for project. Earning Before Depreciation and Taxes (EBDT) Life in years Tax rate Cost of Capital Gain or (Loss) at end of project from decommission/sale. A What is the NPV? What is the IRR? Should they do the project? Why? 4,000,000 1,300,000 7 25% 10% (1,000,000) Approximately what would the Earnings before Depreciation and Taxes (EBDT) be if the IRR B 50% were:
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