Question: ANALYZE THE FOLLOWING PROJECT: (PLEASE DO NOT ANSWER WITH PREVIOUS ANSWERS POSTED ON CHEGG AND GOOGLE. THEY ARE INCORRECT!) a. CALCULATE THE CASH FLOWS. b.

ANALYZE THE FOLLOWING PROJECT:

(PLEASE DO NOT ANSWER WITH PREVIOUS ANSWERS POSTED ON CHEGG AND GOOGLE. THEY ARE INCORRECT!)

ANALYZE THE FOLLOWING PROJECT: (PLEASE DO NOT ANSWER WITH PREVIOUS ANSWERS POSTED

a. CALCULATE THE CASH FLOWS.

b. CALCULATE THE IRR.

c. CALCULATE THE NPV.

d. CALCULATE THE PAYBACK-PERIOD.

e. CALCULATE THE PROFITABILITY INDEX.

f. Would you want to take-on this project?

Initial Investment Change in $ 10,000 NOWC Equipment Shipping $80,000 $10,000 $10,000 MACRS 3 years Modifications Salvage Value $20,000 Tax Rate 25% 4-year Project Revenues $100,000 per year Operating cost $40,000 per year Cost of Capital 10%

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