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Life of the Equipment is 5 Years The company is considering a project involving the picture of new equipment. Change the data area of your
Life of the Equipment is 5 Years
The company is considering a project involving the picture of new equipment. Change the data area of your worksheet to match the following a. What is the net present value of the project? (Negative amount should be indicates by a minus sign. Round all other intermediate calculation to nearest whole dollar.) Net present value $ b. The internal rate return between what two whole discount rates (e.g., between 10% and 11% between 11% and 12%, between 12% and 13%, between 13% and 14%, etc)? The internal rate of return is between and c. Reset the discount rate to 11% Suppose the salvage value is uncertain. How large would the salvage value have to be to result in a positive present value? Minimum salvage value required to generate a positive present value $Step by Step Solution
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