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Problem 9.11 Management of Franklin Mints, a confectioner, is considering purchasing a new jelly bean-making machine at a cost of $282,730. They project that the
Problem 9.11 Management of Franklin Mints, a confectioner, is considering purchasing a new jelly bean-making machine at a cost of $282,730. They project that the cash flows from this investment will be $103,710 for the next seven years. If the appropriate discount rate is 14 percent, what is the IRR that Franklin Mints management can expect on this project? (Round answer to 2 decimal places, e.g. 5.25%.) 642 82.23 is the y por ste tematy the IRR is Problem 9.14 Champlain Corp. management is investigating two computer systems. The Alpha 8300 costs $2,516,825 and will generate cost savings of $1,132,525 in each of the next five years. The Beta 2100 system costs $3,160,500 and will produce cost savings of $856,750 in the first three years and then $2 million for the next two years. If the company's discount rate for similar projects is 14 percent: What is the NPV for the two systems? (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round answers to 0 decimal places, e.g. 5,275.) NPV of Alpha system $ NPV of Beta system Which one should be chosen based on the NPV? Champlain should chose the Alpha 8300 system. Problem 9.23 Management of Sycamore Home Furnishings is considering acquiring a new machine that can create customized window treatments. The equipment will cost $321,550 and will generate cash flows of $96,750 over each of the next six years. If the cost of capital is 13 percent, what is the MIRR on this project? (Round intermediate calculations to 4 decimal places, e.g. 1.2514. Round answer to 2 decimal places, e.g. 15.25%.) MIRR
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