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Q2 Glase Welcome in attempting to evaluate feasibility of imvesting 5100,000 in a piece of equipment that has a S-year life. The flim has estimated
Q2 Glase Welcome in attempting to evaluate feasibility of imvesting 5100,000 in a piece of equipment that has a S-year life. The flim has estimated the cash inflews assocuted with the proposal as shewn in the folftewine table. The firm has a 12% cost af capital. a) As a capital biadgeting analyat you are required to compuate the paryback period, discounted paybact period, net piresent value, thenefit-cost ratio and intermal rate of returis. b) Wisat discedated payback periad indicate? c) What is your opinion about the acceptabilaty of the project? If comprany has issued 1000 thares, then determine the value creation per share. Marisisi 12.50
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