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1.A company is considering a project that has the following cash flows: C0= -1,600, C1= +500, C2= +1,100, and C3= +1,700, with a risk-adjusted discount
1.A company is considering a project that has the following cash flows: C0= -1,600, C1= +500, C2= +1,100, and C3= +1,700, with a risk-adjusted discount rateof 12%.
A)Calculate the Net Present Value (NPV), Profitability Index, and the Discounted Payback of this project.
B)If you were the manager of the firm, will you accept or reject the project based on the calculation results above?
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