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1 Year Investment Cash inflow 1 $ 8,000 $ 2.000 2 0 3 4,000 4 2,000 5 4.000 1,000 6 6,000 4,000 8 4.000 7

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1 Year Investment Cash inflow 1 $ 8,000 $ 2.000 2 0 3 4,000 4 2,000 5 4.000 1,000 6 6,000 4,000 8 4.000 7 1. Under which condition should this project be accepted? 2- Assume there were no additional investment in year five. Will your answer be different? Explain 3. From this question on, assume a 10% discount rate what changes would take place? 4- What is the major shortcoming of all your above calculations? 5. Calculate the MIRR of the project. Detect whether to accept or reject the project

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