Calculate the net present value

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Mandilly Industries is undertaking a series of significant cost saving changes to its operations effective immediately. It will cost the company $2,400,000 to implement the changes today. Over the next eight years, this will result in savings of $200,000 in each of the first two years, $500,000 in each of the three years following that, and $800,000 in each of the final three years.

(i) Calculate the Net Present Value (NPV) at the following required rates of return:

(ii) Calculate the Profitability Index (PI) at the following required rates of return:

Reference no: EM133057235

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