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1a. Determine the net present value (NPV) of a project which requires an initial outlay today of $250,000 (CF 0 = -$250,000), and then produces

1a. Determine the net present value (NPV) of a project which requires an initial outlay today of $250,000 (CF0 = -$250,000), and then produces cash inflows of $75,000 in Year 1 (CF1 = $75,000) followed by $65,000 in Year 2 (CF2 = $65,000) and finally $150,000 in Year 3 (CF3 = $150,000). When determining NPV assume that the opportunity cost of capital is 7.5%? Also, should the company accept or reject this project?

1b. Based on the data in 1a above, what is the internal rate of return (or IRR) on this project?

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