Truman Industries, Inc. (TI) is considering a capital budgeting project. The appropriate discount rate for this project
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Truman Industries, Inc. (TI) is considering a capital budgeting project. The appropriate discount rate for this project is 4%. The initial cost of the project will be $350,000. The project is expected to produce positive after tax cash flows of $140,000 per year for the next 6 years. Winding up of the project will produce an additional after tax positive cash flow of $200,000 in the sixth year. What are the NPV, IRR and payback for the project? Should this project be accepted? Why or why not?
Related Book For
Managerial Accounting
ISBN: 978-0077522940
15th edition
Authors: Ray Garrison, Eric Noreen, Peter Brewer
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