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I will have a similar problem on an exam next week and i need help with trying to get the answer please help Dyno -
I will have a similar problem on an exam next week and i need help with trying to get the answer please help
Dyno - max is considering buying a new waler treatment system for its plant in Austin, Texas. The inwestment proposal passed the initial screening tests (payback and accounting of return) so the cornpany now wares to analyze the proposal using the discourted cash flow mothods. The water freatment system costs S48,000, has a five-yoar life, and has no tesiduli value. The eslmaled net cash inflows trom ervicomental cloamp savings are $13,000 per year over its life. The compary/s required tate of return is 16%. Cick the icon to vew Presen Value of S1 table) (Cick the icon to vew Present Value of Orinary Anouity of $1 table) Present Value of $1 Present VaTue of Ordinary Annultv of \$1 1. Compute the water treatment system's NPV. 2. Find the water treatment system's IRR (exact percentage is not required). 3. Should Dyno - max buy the water treatment system? Why or why not Step by Step Solution
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