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Assume that your firm has to invest in water purification equipment in order to be...

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Finance

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Assume that your firm has to invest in water purification equipment in order to be in compliance with EPA requirements. There are two companies that make equipment satisfy the requirements. You have calculated the NPV and IRR of the equipment produced by Bluewater Inc. which we will call Project B and Crystal Clear Corp which we will call Project C. The equipment produced by Bluewater has an NPV of - $25,000 and an IRR of 2%. The equipment produced by Crystal Clear has an NPV of -$30,000 and an IRR of 3%. The firm's cost of capital is 8%. What is your accept/reject decision? Accept both Band C Accept B and Reject C Accept C and Reject B Reject both B and C

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