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The Green Goddess Company is considering the purchase of a new machine that would increase the speed of manufacturing tires and save money. The net
The Green Goddess Company is considering the purchase of a new machine that would increase the speed of manufacturing tires and save money. The net cost of the new machine is $55,000. The annual cash flows have the following projections. (Use a Financial calculator to arrive at the answers.) Year 1 2 3 UWN Cash Flow $29,000 27,000 27,000 32,000 10,000 a. If the cost of capital is 9 percent, what is the NPV? (Round the final answer to the nearest whole dollar.) NPV $ b. What is the IRR? (Round the final answer to 2 decimal places.) IRR % c. Should the project be accepted? Yes No
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