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Pavone Company is evaluating the purchase of new equipment. The price of the equipment, including shipping and installation, is $ 2 3 5 , 4

Pavone Company is evaluating the purchase of new equipment. The price of the equipment, including shipping and installation, is $235,420. The equipment is fully depreciated at the time of purchase(it is eligible for 100% bonus depreciation). The equipment would be sold after three years for $101,400. The equipment requires a $6,221 increase in net operating working capital. The new equipment would not affect the cost, but the pretax revenues would increase by $134,100 per year. The company tax rate is 22 percent, and the WACC is 11.25 percent.
What is the MIRR of the project? What is the NPV of the project?
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