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1. Consider a project that requires an investment of $35,000 today and generates after-tax cash flows of $8,000 per year over the next 5 years.

1. Consider a project that requires an investment of $35,000 today and generates after-tax cash flows of $8,000 per year over the next 5 years. The appropriate discount rate is 13 percent. What is the projects NPV, IRR, and profitability index? (3 marks) Would you proceed with the project and why? (1 mark)

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