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i would really appreciate getting help woth the following exercise! (a) What is the discounting factor' used in the calculation of NPVS (b) A capital
i would really appreciate getting help woth the following exercise!
(a) What is the discounting factor' used in the calculation of NPVS (b) A capital project involves the purchase of machinery for 12,000. The projected cash flow for 5 years is : 2,500, 5,900, 4,000, 2,500, 1,000. The machine will then be worth a scrap value of 3,000. (1) Calculate the NPV of the project for discount rates of 7%, 12%, 19%, 20%, Plot the graph of NPV vs. (discount rate) (1) Determine the IRR. Discuss the conditions under which the project is profitable Step by Step Solution
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