22 Successful Chocolates Ltd is evaluating the purchase of new processing equipment at a cost of $90

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22 Successful Chocolates Ltd is evaluating the purchase of new processing equipment at a cost of $90 000. The acquisition is expected to generate net cash flows as follows:

Calculate the net present value of the proposed purchase, and indicate whether to accept or reject the investment assuming a cost of capital of:
a 12%
b 14%
c 16%.

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Fundamentals Of Finance

ISBN: 9780994132529

4th Edition

Authors: Andrea Bennett, Jenny Parry, Carolyn Wirth

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