c-1. What is the NPV of the replacement project? (Do not round intermediate calculations.Round your answer to 2 decimal places.) NPV 35.57 million c-2. What is the IRR of the replacement project? (Do not round intermediate calculations. Round your answer to 2 decimal places.) IRR -28.80 % d. Now ignore straight-line depreciation and assume that both new and old equipment are in an asset class with a CCA rate of 30%. PC Shopping Network has other assets in this asset class. What is the NPV of the replacement project? For this part, assume that the new equipment will have a salvage value of $31 million at the end of 3 years. (Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV million
c-1. What is the NPV of the replacement project? (Do not round intermediate calculations.Round your answer to 2 decimal places.) NPV 35.57 million c-2. What is the IRR of the replacement project? (Do not round intermediate calculations. Round your answer to 2 decimal places.) IRR -28.80 % d. Now ignore straight-line depreciation and assume that both new and old equipment are in an asset class with a CCA rate of 30%. PC Shopping Network has other assets in this asset class. What is the NPV of the replacement project? For this part, assume that the new equipment will have a salvage value of $31 million at the end of 3 years. (Do not round intermediate calculations. Round your answer to 2 decimal places.) NPV million
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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