Question: help please solve these two questions and show work! CH 9: Consider an investment that costs $5,000 and has a cash inflow of $1,300 every
CH 9: Consider an investment that costs $5,000 and has a cash inflow of $1,300 every year for 6 years. The required return is 10%, and the required payback is 3 years. Calculate NPV, PI, IRR and payback period. CH 10: A company is planning to have a new 6-year project. It costs $4.3 million. The fixed asset will be depreciated straight-line to zero over its six-year tax life, after which time it will be worthless. No bonus depreciation will be taken. The project is estimated to generate $2,206,000 in annual sales, with costs of $750,000. The tax rate is 22 percent and the required return is 5.7 percent. What is the net present value of this project
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