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Swear Corporation identifies an investment opportunity that will yield end of year cash flows of $30,000 per year in Years 1 through 2, $35,000 per

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Swear Corporation identifies an investment opportunity that will yield end of year cash flows of $30,000 per year in Years 1 through 2, $35,000 per year in Years 3 through 4, and $40,000 in Year 5. This investment will cost the firm $130,000 today, and the firm's required rate of return is 10 percent. What is the IRR for this investment? Should the company take this investment? O 19.59%; No O 9.17%; Yes 9.17%; No 19.59%; Yes Question 14 5 pts Assume a company can invest in equipment that will cost $750,000 and is expected to generate $155,000 a year in revenue for the first three years, $145,000 for the next three years, and $105,000 for the next four years. The company has the capital available for the equipment and could alternatively invest it in the stock market for an expected return of 7% per year. The managers feel that buying the equipment or investing in the stock market are similar risks. What is the NPV for this investment and would the managers accept this investment? Assume a company can invest in equipment that will cost $950,000 and is expected to generate $160,000 a year in revenue for the first three years, $140,000 for the next three years, $120,000 for the next three years, and $100,000 for the final year. The company has the capital available for the equipment and could alternatively invest it in the stock market for an expected return of 8.5% per year. The managers feel that buying the equipment or investing in the stock market are similar risks. What is the NPV for this investment and would the managers accept this investment? O29,331.75; Yes O $79,331.75; Yes O $79,331.75; No -$29,331.75; No

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