Primus corp management is planning to convert an existing


Primus Corp. management is planning to convert an existing warehouse into a new plant that will increase its production capacity by 45 percent. The cost of this project will be $7,678,181. It will result in additional cash flows of $1,877,200 for the next eight years. The discount rate is 10.12 percent. a. What is the payback period? (Round answer to 2 decimal places, e.g. 15.25) The project’s payback period is years b. What is the NPV for this project? (Round intermediate calculations and final answers to 0 decimal places, e.g. 1,251.) The project’s NPV is $ c. What is the IRR? (Round intermediate calculations to 0 decimal places, e.g. 1,251 and final answer to 2 decimal places, e.g. 15.25%.) The project’s IRR is %

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Financial Management: Primus corp management is planning to convert an existing
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