Npv and irr czick company is considering an investment in a


Question: NPV and IRR Czick Company is considering an investment in a machine that costs $36,048 and would result in cash savings of $10,000 per year for 5 years. The company's cost of capital is 10%.

1. Compute the project's NPV at 10%, 12%, and 14%.

2. Compute the project's IRR.

3. Suppose the company uses the NPV model. Would it accept the project? Why or why not?

4. Suppose the company uses the IRR model. Would it accept the project? Why or why not?

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