Solution-Should errorless proceed with the project and why

Should errorless proceed with the project and why or why not

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Reference no: EM133087155

Question - You are the Senior VP of Manufacturing for Errorless Baseball Gloves, a U.S. based "high-end" baseball glove manufacturer. You are concerned about your ability to meet demand in 2023 and beyond and you would like to begin construction of a new manufacturing facility to keep up with the increasing demand for baseball gloves in the U.S. market and abroad. You will be presenting your analysis to the Board of Directors for Errorless Baseball Gloves to seek approval. Errorless' WACC is 9.5%. Given the projected investment and future cash flows listed below, calculate the NPV, IRR and the MIRR of your proposed project. What do your calculations tell you about your proposed project? Should Errorless proceed with the project and why or why not? What are some considerations in the decision to move forward?

Project:

Cash Flow Year 0 -$3,600,000

Cash Flow Year 1 $1,050,000

Cash Flow Year 2 $1,150,000

Cash Flow Year 3 $1,250,000

Cash Flow Year 4 $1,300,000

Reference no: EM133087155

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Should errorless proceed with the project and why or why not

Reference no: EM133087155

Reference no: EM133087155

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