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Should the research center acquire the equipment explain

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Question - The head of the oncology department of FH Research Center is considering the purchase of some new equipment. The cost is $420,000, the economic life is 5 years, and there is no terminal disposal value. Annual cash inflows from operations would increase by $140,000, and the required rate of return is 14%. There are no taxes.

1) Compute the NPV

2) Should the research center acquire the equipment? Explain.

Reference no: EM131813752

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