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Fred is considering an investment in new equipment for his small business. He already determined the relevant cash flows and calculated a number of


 

Fred is considering an investment in new equipment for his small business. He already determined the relevant cash flows and calculated a number of metrics related to the investment: NPV is small, but positive, at $5,000; IRR is 8%, while his minimum required return is 7%; and the payback period is 4.5 years, compared to a useful life of 5 years. (a1) Should Fred move forward with this investment based on the metrics he calculated regarding this investment?

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