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Problem:

You are considering a project with the initial cash outlay of $80,000 and expected cash flows of $22,400 at the end of each year for 6 years. The discount rate for this project is 10.4%.

Please answer the following question:

Question 1: What are the projects payback and discounted payback periods?

Question 2: What is the projects NPV?

Question 3: What is the projects PI?

Question 4: What is the projects IRR?

Note: Please show how to work it out.

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  • Category:- Basic Finance
  • Reference No.:- M91149263

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