Question
Piping Hot Food Services (PHFS) is evaluating a capital budgeting project that costs $74,000. The project is expected to generate after-tax cash flows equal to
Piping Hot Food Services (PHFS) is evaluating a capital budgeting project that costs $74,000. The project is expected to generate after-tax cash flows equal to $31,500 per year for three years. PHFS's required rate of return is 13 percent.
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Compute the project's net present value (NPV). Do not round intermediate calculations. Round your answer to the nearest cent. Use a minus sign to enter a negative value, if any.
$
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Compute the project's internal rate of return (IRR). Round your answer to two decimal places.
%
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Should the project be purchased?
The project - SHOULD / SHOULD NOT - be purchased.
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