What is the npv of the drill press project

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A new drill press is considered a possible new investment for Exron corp if it generates an expected return of $1750 per yera for the first five years and $2550 per year for the first five years. Ts expected purchase price (including installation) is 9,890. What is the drill press projects expected IRR?

Suppose that exron can borrow the funds in the money and captial markets to make this investment at a cost of 14%. Should it proceed with project?

If exron's investor required rate of return is 15.5% What is the NPV of the drill press project? Based on calaculation of the NPV should Exron pursue this project any further?

Reference no: EM131556731

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