Question: Should the project be accepted using the IRR and NPV methods? Yes=True No=False WACC 9% Cost of machine 2 million Working capital needed at time

Should the project be accepted using the IRR and NPV methods? Yes=True No=False

WACC 9%

Cost of machine 2 million

Working capital needed at time 0 is $250,000 none is recovered at projects end

Cash flow year 1 $500,000

Cash Flow years 2 through 4 $700,000

Salvage value end of year 4 is $300,000

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