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2. A firm is considering investing in a project with the following cash flows: Pomts in time (yearly intervals) 0 1 2 3 4 Project
2. A firm is considering investing in a project with the following cash flows: Pomts in time (yearly intervals) 0 1 2 3 4 Project A - 180.000 50,000 60.000 70,000 80.000 cost of capital is 10 per cent. Required: a) Calculate the intemal rate of retum (IRR) (1.5 marks) For project A: try 15% and 16% b) Calculate the net present value (NPV) for the project. (1 mark)
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