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For discount factors use Exhibit 1 2 B - 1 and Exhibit 1 2 B - 2 . Hunt Inc. intends to invest in one

For discount factors use Exhibit 12B-1 and Exhibit 12B-2.
Hunt Inc. intends to invest in one of two competing types of computer-aided manufacturing equipment: CAM X and CAM Y. Both CAM X and CAM Y models have a project life of
10 years. The purchase price of the CAM X model is $3,600,000, and it has a net annual after-tax cash inflow of $900,000. The CAM Y model is more expensive, selling for
$4,200,000, but it will produce a net annual after-tax cash inflow of $1,050,000. The cost of capital for the company is 10%.
Required:
Calculate the NPV for each project. Round present value calculations and your final answers to the nearest dollar.
CAM X: $
CAM Y: $
Which model would you recommend using NPV?
Select the IRR for each project.
CAM x:
CAM Y:
Which model would you recommend using IRR?
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