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1. (40 ps Suppo r will last for four years with tea t out c hes of 534,300. The project the required rate of (1)

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1. (40 ps Suppo r will last for four years with tea t out c hes of 534,300. The project the required rate of (1) Compute the pr based on ne prend o Why p h ethe firm invest in this project (2) Compute the internal role of retum. Should the firm invest in this project based on inter rate of returs? Why (3) Use a graph to show why the firm's decision inconsistent. He specific (1) and (2) are consistent or (4) Now suppose another project's future cash flows are given below with an initial cash outflow 514 900.00). The required to return is 12%. Using a graph to explain why you cannot use IRR for capital budgeting in this case. (You do not need to compute anything here) Cash Flow $12.500 $12.500 $12.500 $12.500 $12.500 $12.500 -$19,700 -$20000 -$20,000 -$20,000 1. (40 ps Suppo r will last for four years with tea t out c hes of 534,300. The project the required rate of (1) Compute the pr based on ne prend o Why p h ethe firm invest in this project (2) Compute the internal role of retum. Should the firm invest in this project based on inter rate of returs? Why (3) Use a graph to show why the firm's decision inconsistent. He specific (1) and (2) are consistent or (4) Now suppose another project's future cash flows are given below with an initial cash outflow 514 900.00). The required to return is 12%. Using a graph to explain why you cannot use IRR for capital budgeting in this case. (You do not need to compute anything here) Cash Flow $12.500 $12.500 $12.500 $12.500 $12.500 $12.500 -$19,700 -$20000 -$20,000 -$20,000

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