1.XYZ Company is considering the purchase of a new machine. This investment requires an initial cash...
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1.XYZ Company is considering the purchase of a new machine. This investment requires an initial cash butflow of $150,000 and will generate after-tax cash inflows of $18,000 per year for 10 years. For each of the listed required rates of return, determine the project's net present value. a. The interest rate is 5% b. The interest rate is 12%) c. Would the project be accepted under part a or b? QU 1.XYZ Company is considering the purchase of a new machine. This investment requires an initial cash butflow of $150,000 and will generate after-tax cash inflows of $18,000 per year for 10 years. For each of the listed required rates of return, determine the project's net present value. a. The interest rate is 5% b. The interest rate is 12%) c. Would the project be accepted under part a or b? QU
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Answer rating: 100% (QA)
a The projects net present value at a 5 interest rate is 3146250 This is calcu... View the full answer
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