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II - 3 9 NPV and IRR Czick Company is considering an investment in a machine that costs $ 3 6 , 0 4 8
II NPV and IRR
Czick Company is considering an investment in a machine that costs $ and would result in cash savings of $ per year for years. The company's cost of capital is
Compute the project's NPV at and
Compute the project's IRR.
Suppose the company uses the NPV model. Would it accept the project? Why or why not?
Suppose the company uses the IRR model. Would it accept the project? Why or why not?
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