Hunt the intends to invest in one of two competing types of computer-aided manufacturing equipment: CAMX and CAM Y B CAM X and CAM Y models have a project of 10 years. The purchase price of the CAM X model is $3,600,000, and it has a ne annual alter-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: 1. Calculate the NPV for each project. Round present value calculations and your final answers to the nearest dollar. CAM XE = CAMY: 5 Which model would you recommend using NPV? CAMY 2. Select the IRR for each project. CAM X: 20 - 25 - CAMY 20%-25% Which model would you recommend using IRR? Both Oh My Wor 1. Net Present Value (NPV): NPV = P. The difference between the present value of future cash flows and the initial investment out Apply the discount rate to the cash flow i ng the cost of capital with either Exhibit Check My Work Smare Check My Works remaining Previous Att. Era ca acesta sama sement for a |