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(25 Points) University Painting is considering investing in a new paint sprayer to allow them to paint more classrooms in less time. The sprayer
(25 Points) University Painting is considering investing in a new paint sprayer to allow them to paint more classrooms in less time. The sprayer would have the following cash flow and cost of capital (r) data. What is the project's NPV, IRR, MIRR and Discounted Payback? Explain whether the company should go forward with the project. Why or why not? Be sure to discuss the reason for choosing the evaluation method you did. Cost of Capital: 19.5% Year Cash Flow a. NPV (5 points): b. IRR (5 points): 0 1 2 3 -4,875 1,600 1,640 1,680 1 c. MIRR (5 points): d. Discounted Payback (5 points): e. Decision and Rationale (5 points):
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To answer the question correctly we need to calculate the NPV IRR MIRR and Discounted Payback for the cash flows provided Here is the detailed solutio...Get Instant Access to Expert-Tailored Solutions
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