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Tabletop Ranches is considering the purchase of a new helicopter for $390,000. This purchase is expected to increase Tabletop's cash flow expenses for the next
Tabletop Ranches is considering the purchase of a new helicopter for $390,000. This purchase is expected to increase Tabletop's cash flow expenses for the next seven (7) years. Its marginal tax rate is 34%, and its weighted-average cost of capital MACC) is 11%, what is its IRR and will this purc by $62,000 through reduced fuel and maintenance hase maximize shareholders wealth? Select one a. IRR is 2.75% and does not maximize shareholders' wealth. b. IRR is 8.23% and does not maximize shareholders' wealth. C. IRR is 11.23% and does maximize shareholders' wealth. d. IRR is 11.23% and does not maximize shareholders wealth
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