Question
Company A is considering a new piece of equipment. It will cost $6,000 and will produce cash flows of $1,000 every year for the
Company A is considering a new piece of equipment. It will cost $6,000 and will produce cash flows of $1,000 every year for the next 12 years (the first cash flow will be exactly one year from today). What is the NPV if the appropriate discount rate is 10%? 814 984 194 624 Company A is considering a new piece of equipment. It will cost $6,000 and will produce cash flows of $1,000 every year for the next 12 years (the first cash flow will be exactly one year from today). What is the IRR of this project? 11.66% 14.24% 15.32% O 12.69%
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