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I I-B2 NPV for Investment Decisions The head of the oncology department of FH Research Center is considering the purchase of some new equipment. The
I I-B2 NPV for Investment Decisions The head of the oncology department of FH Research Center is considering the purchase of some new equipment. The cost is $420,000, the economic life is 5 years, and there is no terminal disposal value. Annual cash inflows from operations would increase by $140,000, and the required rate of return is 14%. There are no taxes. 1. Compute the NPV. 2. Should the research center acquire the equipment? Explain
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