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14.Braun Industries is considering an investment project that has the following cash flows: Year Cash Flow 0 -$1000 1 ? 2 300 3 500 4
14.Braun Industries is considering an investment project that has the following cash flows:
Year | Cash Flow |
0 | -$1000 |
1 | ? |
2 | 300 |
3 | 500 |
4 | 400 |
The payback period is 2.6 years. What is the project's internal rate of return (IRR), and net present value (NPV) if the discount rate is 10%?
A) IRR = 38.65%, NPV = $587.
B) IRR = 21.22%, NPV = $260.
C) IRR = 17.05%, NPV = $170.
D) IRR = 6.13%, NPV = -$103
E) IRR = 17.05%, NPV = $500.
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