Using the IRR or NPV method, calculate and determine if the following capital budget project is viable Project Cost $2 million, Project Life 10 years, and Cost of Capital 15 Your company expects to save $450,000 per year for the next 10 years by purchasing the item The cost of capital is 15 The company believes its initial investment will be $2 million

Question: Using the IRR or NPV method, calculate and determine if the following capital budget project is viable: Project Cost $2 million, Project Life 10 years,

Using the IRR or NPV method, calculate and determine if the following capital budget project is viable: Project Cost $2 million, Project Life 10 years, and Cost of Capital 15%.

Your company expects to save $450,000 per year for the next 10 years by purchasing the item.
The cost of capital is 15%.
The company believes its initial investment will be $2 million.

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