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what is the NPV and IRR answers to this question and should i take the project or no? FIN 320 - Homework a 8 Capieal
what is the NPV and IRR answers to this question and should i take the project or no?
FIN 320 - Homework a 8 Capieal Budgetiag Cashfors You are trying to decids whether to replace a machint on yoer prodaction line. The new machine will cost $1,000,000, tut will be more efficicet than the oll machecc, ratacing costs by 5400 o00 per: yeat. Your old inactine is fully deprecieted, but you could vell it for 550,500 . You would dopeeciate the new machine using the straight-line deprociation over 5 year sabodale to a slvage value of 50. However, you plan to sell it four yeat from now for 5200,000 . Your tex nate is 254 and the appropriate discocant rate is tos. What afc the NPV and IRR of the progeat? Should you take the ptoject Step by Step Solution
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