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Suppose a 10 -year project requires the following initial investment costs. Building: - Lasts for 10 years - Initial cost of $60,000 Equipment - Last
Suppose a 10 -year project requires the following initial investment costs. Building: - Lasts for 10 years - Initial cost of $60,000 Equipment - Last for 8 years - Initial cost $15,000 Vehicles: - Last for 5 years - Initial cost of $45,000 Assume the investor is using the straight-line depreciation method. The project earns annual revenue of $65,000 and pays an annual operating cost of $12,000. Assume a 5% discount rate, 25% tax rate, and ignore salvage value of assets. Please round ALL answers to two decimals. Do not include any commas (, ) "\$" or "\%" in your answers. Market CBA Perspective: The Market NPV is $ and the Market IRR is \$ Private/lnvestor CBA Perspective: The Private Perspective NPV of this project is $ and the Private Perspective IRR of this project is %. If the discount rate equals the borrowing rate of the fund, using the IRR rule, the investor should (accept/reject) the project
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