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entitli- 6 Week 3 Discussion Tasks: Answer the following questions: . What is the total investment in the new machine at time = O (T
entitli- 6 Week 3 Discussion Tasks: Answer the following questions: . What is the total investment in the new machine at time = O (T = 0)? . What are the net cash flows in each of the 5 years of operation? . What are the terminal cash flows from the sale of the asset at the end of 5 years? . What is the NPV of the investment? . What is the IRR of the investment? . What is the payback period for the investment? . What is the profitability index for the investment? . According to the decision rules for the NPV and those for the IRR, is the project acceptable? . Is there a conflict between the two decision methods? If so, what would you use to make a recommendation? . What are the pros and cons of the NPV and the IRR? Explain your a HSWE'FS. Submission Details
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