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Year 1 - $1,100,000; Year 2 - 1,450,000; Year 3 - 1,300,000; Year 4 - $950,000 You have been asked to provide the NPV Analysis. Assuming that the required rate of return is 15% and the initial cost is of the machine is $3,000,000. 1 - What is the project IRR? 2 - What is the projects NPV? 3 - Should the company accept this project? Why or why not? 4 - Explain how depreciation will affect the PV of the project? 5 - Provide examples of at least one of the following as it relates to the project? a - Sunk Cost; b- Opportunity cost; c - Erosion 6 - Explain how you would conduct a scenario and sensitivity analysis of the project? Project specific risks and market risks related to the project?

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Basic Finance, Finance

Category:- Basic Finance
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