Question: A firm is considering a new inventory system that will cost $150,000. The system is expected to generate positive cash flows over the next four
A firm is considering a new inventory system that will cost $150,000. The system is expected to generate positive cash flows over the next four years in the amounts of $39,000 in year 1, $68,000 in year 2, $78,000 in year 3, and $55,000 in year 4. The firms required rate of return is 8%. Calculate the projects payback period, net present value (NPV), internal rate of return (IRR), MIRR, and profitability index. Should we accept this
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