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You are considering the purchase of a new piece of equipment. You have gathered the following information from staff Required equipment investment: 10,000 Projected net
You are considering the purchase of a new piece of equipment. You have gathered the following information from staff
Required equipment investment: 10,000
Projected net cash inflows: Year 1- $2,000 Year 2- $2,000 Year 3- $4,000 Year 4- $4,000 Year 5- $5,000
in addition, you have set the required rate of return at 10%
Determine the Net Present Value of the project
and Determine whether the project is acceptable based on NPV
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