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use the calculator not excel and show work please . Mandilly Industries is undertaking a series of significant cost saving changes to its operations effective
use the calculator not excel and show work please .
Mandilly Industries is undertaking a series of significant cost saving changes to its operations effective immediately. It will cost the company $1,800,000 to implement the changes today. Over the next ten years, this will result in savings of $500,000 in each of the first three years, $200,000 in each of the four years following that, and $100,000 in each of the final three years. (i) Develop the timeline (linear representation of the timing of cash flows). (ii) Calculate the Payback Period (PB). (iii) Calculate the Internal Rate of Return (IRR). (iv) Calculate the Net Present Value (NPV) at the following required rates of return: (a) 8% (b) 10% (c) 12% (d) 14% Calculate the Profitability Index (PI) at the following required rates of return: (a) 8% (b) 10% (c) 12% (d) 14% (vi) Using IRR and NPV criterion, comment if the project should be accepted or rejected at the following required rates of return: (a) 8% (b) 10 % (c) 12% (d) 14% (v) 3 Step by Step Solution
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