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A firm is considering investing in a project with the following cash flows: (ex: Year 1 is 2,000 and so on)

  1. 2,000
  2. 3,000
  3. 4,000
  4. 3,500
  5. 3,000
  6. 2,000
  7. 1,000
  8. 1,000

The project requires an initial investment of $12,500, and the firm has a required rate of return of 10 percent. Compute the payback, discounted payback, and net present value, and determine whether the project should be accepted.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92630653
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