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What is this project IRR

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Question - Willy Wonka is debating whether to invest in a new Chocolate Gobstopper machine. The project will require an initial investment of $60,000. It is expected to return $10,000/year for the first five years of its life and $8,000/year for the next three. Its scrap value at the end of this time will be $1,000. What is this project's IRR? What is the project's NPV if the cost of capital for Wonka is 4%? 6%?

Reference no: EM132959346

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