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FIN 302N Quic Assume your company is looking at project that will have cash flows...

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FIN 302N Quic Assume your company is looking at project that will have cash flows of year 1 650,000.00, year 2 1,200,000. And year 3 1,450,000.00. Your equipment cost is 2,300,000.00 and your working capital will be 20% of that amount. Your tax rate is 20% and your company cost of capital is 7%. If your equipment can be salvaged for 100,000.00 what is your NPV and your profitability Index? DI TUTOZ0-U-UNE-U-UDOU I luvuises ENSUZD-205U-223/9544 TRILLFUS 20 Is the IRR greater or less than 7% If you have mutually exclusive project which should you choose? A: NPV 32,000.00 IRR 29% B: NPV 43,000 IRR 18% C: NPV 72,000 RR 6% D: NPV 35,000 RR 48% E: NPV 7,200 TRR 106%

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