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Company ABC is planning an capital investment. The equipment they are going to buy will have an initial cost of $400,000 but will give them
Company ABC is planning an capital investment. The equipment they are going to buy will have an initial cost of $400,000 but will give them a return of $100,000 in year 1, $100,000 in year 2, 100,000 in year 3 and $75,000 in year 4. If the rate is 10%, What is the NPV and IRR? Is this
a good investment?
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