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. Pluto Inc. is considering upgrading by purchasing Neptune Corp. The owners of Neptune Corp. are asking for $165 million in cash. The managers of

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. Pluto Inc. is considering upgrading by purchasing Neptune Corp. The owners of Neptune Corp. are asking for $165 million in cash. The managers of Pluto estimate that, under their superior control, Neptune Corp. will generate cash flows of $17.5 million per year for five years and then could be sold for $210 million. What is the IRR of this investment? Notational Inc. is considering installing a new server. The new cloudlike machine costs $75,000 and is expected to have a useful economic life of 10 years, after which it will have a book value of $0. The company's tax rate is 25%. In addition to the equipment costs, management expects installation costs of $10,000 and an initial outlay for net working capital of $12,500. The new server is expected to generate an additional $15,000 per year in earnings on an after-tax basis over its useful life, but an additional $4,000 per year is required in net working capital. All net working capital will be recovered at the end of 10 years. Assume that Notational has a cost of capital of 10%. Calculate the NPV and IRR for this project. . Pluto Inc. is considering upgrading by purchasing Neptune Corp. The owners of Neptune Corp. are asking for $165 million in cash. The managers of Pluto estimate that, under their superior control, Neptune Corp. will generate cash flows of $17.5 million per year for five years and then could be sold for $210 million. What is the IRR of this investment? Notational Inc. is considering installing a new server. The new cloudlike machine costs $75,000 and is expected to have a useful economic life of 10 years, after which it will have a book value of $0. The company's tax rate is 25%. In addition to the equipment costs, management expects installation costs of $10,000 and an initial outlay for net working capital of $12,500. The new server is expected to generate an additional $15,000 per year in earnings on an after-tax basis over its useful life, but an additional $4,000 per year is required in net working capital. All net working capital will be recovered at the end of 10 years. Assume that Notational has a cost of capital of 10%. Calculate the NPV and IRR for this project

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