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Steps for Happyville is considering the purchase of new equipment that will cost $ . 5 2 5 million if purchased today and will generate

Steps for
Happyville is considering the purchase of new equipment that will cost $.525 million if purchased today and will generate the following cash inflows and outflows:
Year
Receipts
Cash Expenditures
1
$750,000.00
$500,000.00
2
$775,000.00
$525,000.00
3
$775,000.00
$525,000.00
4
$800,000.00
$550,000.00
5
$875,000.00
$625,000.00
The cost of capital is 6.00% annually. Reinvestment rate is 2%.
Questions: Calculate NPV, IRR, MIRR, BCR, and Payback of the project. Should Happyville pursue this investment?

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