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The Duval Corporation has recently evaluated a proposal to invest in cost-reducing production technology. According to the evaluation, the project would require an initial investment
- The Duval Corporation has recently evaluated a proposal to invest in cost-reducing production technology. According to the evaluation, the project would require an initial investment of $17,166 and would provide equal annual cost savings for five years. Based on a 10 percent discount rate, the project generates a net present value of $1,788. The project is not expected to have any salvage value at the end of its five-year life.
- Refer to Duval Corporation. What are the expected annual cost savings of the project?
- Refer to Duval Corporation. What is the project's expected internal rate of return (IRR)?
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