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Compute the project net present value

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Problem - Piping Hot Food Services (PHFS) is evaluating a capital budgeting project that costs $75,000. The project is expected to generate after-tax cash flows equal to $26,000 per year for four years. PHFS's required rate of return is 14 percent. Compute the project's (a) net present value (NPV) and (b) internal rate of return (IRR). (c) Should the project be purchased?

Reference no: EM132698509

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