Fantini Company is considering to purchase a new equipment, which cost $75,000 today. The equipment...
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Fantini Company is considering to purchase a new equipment, which cost $75,000 today. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero-salvage value. The equipment would require additional working capital of $16,500. The equipment generates sales revenues of $75,000 each year. The operating cost, excluding depreciation, would be $26,000and per year. Fantini companys tax rate is 41% and its WACC for this project is 12.42% What is the project's NPV? What the projects MIRR.
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