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3/14/1950 Economy Shipping Company 1456 First Street Braddock Penn., 74589 To the executive committee, Recently I was asked to report on the feasibility of repairing one of the old steam riverboats or of replacing the steamboat with a new diesel-powered boat. It is my strong recommendation that the old steamboat be rehabilitated instead of a new diesel boat purchased. Based on the cash flows for each situation, the net present value for the project would be $-23,353.81. This would mean that there would be a negative return if Economy Shipping were to purchase the new diesel boat rather than rehabilitating the old steamboat. Also, the cost of capital for the project was 10 percent. Based on the cash flows, the IRR and the MIRR for the project were 8.67 and 9.51 respectively. Because the IRR and the MIRR are less than the cost of capital, it means that purchasing the diesel boat rather than rehabilitating...

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