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1. Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9% and
1. Consider an investment that costs $100,000 and has a cash inflow of $25,000 every year for 5 years. The required return is 9% and required payback is 4 years.
a. What is the payback period?
b. What is the NPV? What is the IRR?
c. d. Should we accept the project?
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