help .6 NPV and IRR, Mutualiy Exclusive Projects For discount factors...
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NPV and IRR, Mutualiy Exclusive Projects For discount factors use Exhibit 1281 and Exhibit 1282. Techno Inc. intends to invest in one of two competing types of flexible manufacturing systems: FLEX-1K and FLEX-2Z. Both systems have a project life of 10 years. The purthase price of the FLEX-1K system is $9,600,000, and it has a net annual after-tax cash inflow of $2,400,000, The FLEX-2Z is more expensive, selling for $11,200,000, but it will produce a net annual after-tax cash inflow of $2,800,000. The cost of capital for the company is 12%. Required: 1. Calculate the NPV for each project. Round present value calculations and your final answers to the nearest dollar. FLEX-1K: 5 FLEX-2Z: 5 Which model would you recommend using NPV? 2. Calculate the IRR for each project. FLEX- 11K: FLEX- 22: Which model would you recommend using IRR

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