Increase the speed of manufacturing tires and save money

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Reference no: EM131013163

The Green Goddess Salad Oil Company is considering the purchase of a new machine that would increase the speed of manufacturing tires and save money. The net cost of the new machine is $45,000. The annual cash flows have the following projections. Year Cash Flows 1. $15,000 2. $20,000 3. $25,000 4. $10,000 5. $ 5,000 a. If the cost of Capital is 10%, what is the net present value? b. What is the internal rate of return? c. Should this project be accepted? Why?

Reference no: EM131013163

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