Question: please explain each step. Q5-A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional $8,000 invested in
please explain each step.
Q5-A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional $8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifth year through the fifteenth year. At the end of 15 years, the company can be sold for $33,000. a. Draw the cash flow diagram b. Find PW when MARR=10%. Is this project financially acceptable? c. Determine the IRR. Is the project financially acceptable if MARR=10%
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