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Please answer all parts, thank you Manzer Enterprises is considering two independent investments: A new automated materials handling system that costs $900,000 and will produce
Please answer all parts, thank you
Manzer Enterprises is considering two independent investments: A new automated materials handling system that costs $900,000 and will produce net cash inflows of $300,000 at the end of each year for the next four years. Manzer has a cost of capital of 8 percent. The present value tables provided in Exhibit 19B.1 and Exhibit 19B.2 must be used to solve the following problems. Required: 1. Calculate the IRR for the first investment. Enter your answers as whole percentage values (for example, 16\% should be entered as "16" in the answer box). Between % and % Determine if it is acceptable or not. Between % and % Comment on its acceptability. 3. What if the cash flows for the first investment are $250,000 instead of $300,000 ? Give your answer to the nearest whole percent. The IRR would be about %Step by Step Solution
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