Question: Question 2 10 points Consider a capital expenditure project to purchase and install new equipment with an initial cash out of 51.000. The project expected
Question 2 10 points Consider a capital expenditure project to purchase and install new equipment with an initial cash out of 51.000. The project expected to generate net aner-tax cash flow each year of 1.900 for eight years, and at the end of the project one time after tax cash flow of $1.500 is expected. The formes a weighted average cost of capoftopercent and requires a 5-year back on proacts of this type. Determine whether this project should be accepted or rejected using ACE in Ri 10.54 percent and is greater than 10 percent Rejectis 9.75 percent and is less than 10 recent Rco since I 10.54 percent and pater than percent Accept si IRIS 9.75 percent and is greater than percent ESCRIBE -5.75 percent and is less than percent
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