This purchase is expected to increase tabletops cash flow


Tabletop Ranches is considering the purchase of a new helicopter for $290,000. This purchase is expected to increase Tabletop's cash flow by $62,000 through reduced fuel and maintenance expenses for the next eight (8) years.

Its marginal tax rate is 34%, and its weighted-average cost of capital (WACC) is 11%. What is its IRR and will this purchase maximize shareholders wealth?

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Financial Management: This purchase is expected to increase tabletops cash flow
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