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Sylvester Pet Foods (SPF) is evaluating a capital budgeting project that costs $760,000. The project is expected to generate after-tax cash flows equal to $190,600
Sylvester Pet Foods (SPF) is evaluating a capital budgeting project that costs $760,000. The project is expected to generate after-tax cash flows equal to $190,600 per year for seven years. SPFs required rate of return is 1 5 percent. Compute the projects (a) net present value (NPV) and (b) internal rate of return (IRR). (c) Should the project be purchased?
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