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A project's initial cost is $1,250,000. It is expected to produce cashflows of $300,000 for 6 years, as well as a cashflow of $100,000 in year 7. a) (review) What is the project's payback period? b) If the WACC is 11%, what is the NPV? c) Based on the answer to b above, should the project be accepted or rejected? Why? d) Based on the answer to c above, will the project increase the value of the firm, decrease it, or have no impact on the value of the firm?

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Financial Management, Finance

Category:- Financial Management
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