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JFJ Coffee Company is evaluating the within-plant distribution system for its new plant. The two systems...

JFJ Coffee Company is evaluating the within-plant distribution system for its new plant. The two systems are: 1) a conveyer system; 2). Forklift. The cost of the capital for the plant is 9%, and the projects’ expected net costs are listed as below:   

Expected Net Cash Costs

              Year                 Conveyor                                 Forklift

              0                      ($300,000)                               ($120,000)

              1                      (66,000)                                   (96,000)          

              2                      (66,000)                                   (96,000)

              3                      (66,000)                                   (96,000)

              4                      (66,000)                                   (96,000)

              5                      (66,000)                                   (96,000)

   What are the IRR and NPV of each alternative? Which method would you recommend? Justify your answer.

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Answer #1

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

JUST WRITTEN IN EXCEL NO EXCEL FUNCTION IS USED

w © v L 1 ENG 14:41 18-03-2020 24 LB20 X fix LB LC LD LE LG LG LH L I PV FACTOR AT 9% year CONVEYOR FORKLIFT -300000 -66000 -

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