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2. A project has an initial outflow of $18,500 followed by inflows of $6000, 7800, 9700, and $10,000 at the end of each year for

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2. A project has an initial outflow of $18,500 followed by inflows of $6000, 7800, 9700, and $10,000 at the end of each year for the next four years, respectively. The cost of capital is 12%. a) Find the net present value (NPV). (5 points) b) Would you accept this project using the net present value guideline? Explain why you chose this specific decision. (1.5 points) c) Find the undiscounted payback period. (2 points) d) Find the profitability index.(2 points) e) Set up the mathematical expression for finding the internal rate of return (IRR) for the project. Use the specific numbers given in the problem and the symbol IRR. You need not solve the equation for IRR. (4 points)

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