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Consider a capital expenditure project to purchase and install new equipment with an initial cash outlay of $35,000. The project is expected to for ten

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Consider a capital expenditure project to purchase and install new equipment with an initial cash outlay of $35,000. The project is expected to for ten years, and at the end of the project a one-time after-tax cash flow of $11,000 is expected. The firm has a weighted average cost of cap projects of this type. Determine whether this project should be accepted or rejected using NPV. Accept since NPV is $4,657.54 and is greater than zero Reject since NPVIS-574,657.54 and is less than zero Accept since NPV = $39,657.54 and is greater than zero Accept since NPV is $74,657.54 and is greater than zero None of the listed choices is correct urchase and install new equipment with an initial cash outlay of $15.000. The project is expected to generate net after tax cash flow each year of 5000 one-time after-tax cash flow of $11,000 is expected. The firm has a weighted average cost of capital of 75 percent and requires at your payback on project should be accepted or rejected using NPV. ater than zero s than zero ater than zero ater than zero

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