9-8 re-smitting

ping Hot Food Services (PHFS) is evaluating a capi- 9-7 Pi tal budgeting project that costs $75,000. The project is expected to generate after-tax cash flows equal to $26,000 per year for four years. PHFS's required rate of return is 14 percent. Compute the project's (a) net present value (NPV) and (b) internal rate of return (IRR). (c) Should the project be purchased? 9-8 Kansas Furniture Corporation (KFC) is evaluating a capital budgeting project that costs $34,000 and is expected to generate after-tax cash flows equal to $14,150 per year for three years. KFC's required rate of return is 12 percent. Compute the project's (a) net present value (NPV) and (b) internal rate of return RR). (c) Should the project be purchased? Construct an NPV profile for a capital budget- ing project that costs $64,000 and is expected to 9-9 generate $18,200 per year for five years. Using the NPV profile, determine the project's internal rate