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Compute NPV & IRR for the following data and comment on the decision you might take with respect to selecting this project. Initial Cost: $200,000

Compute NPV & IRR for the following data and comment on the decision you might take with respect to selecting this project.

  • Initial Cost: $200,000
  • Annual Benefit: $100,000
  • Lifespan: 5 years
  • Closure Cost (in year 6): $310,000
  • Expected rate of return 6%

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