Compute the project’s net present value (npv)

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Kansas Furniture Corporation (KFC) is evaluating a capital budgeting project that costs $34,000 and is expected to generate after-tax cash flows equal to $14,150 per year for three years. KFC's required rate of return is 12 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: EM131393988

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