Piping hot food services is evaluating capital budgeting

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Reference no: EM13721491

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 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: EM13721491

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