Question: please answer the following question providing steps on how you did. either manually or by using the business profesionnal plus calc. how to type the
Crane Industries management is planning to replace some existing machinery in its plant. The cost of the new equipment and the resulting cash flows are shown in the accompanying table. The firm uses an 18 percent discount rate for projects like this. Should management go ahead with the project? Year 0 1 2 Cash Flow -$3,380,300 962.410 969,400 1,094,700 1,274,060 1,543,700 3 4 5 What is the NPV of this project? (Enter negative amounts using negative sign e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to O decimal places, e.g. 1,525.) The NPV is $ Should management go ahead with the project? The firm should the project
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