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2. Consider a project that has the net cash flows shown below. The project cost of capital is 12.5 percent. Year 0: ($212,500) Years 1-5:

2. Consider a project that has the net cash flows shown below. The project cost of capital is 12.5 percent. Year 0: ($212,500) Years 1-5: $32,600 per year Years 6-10: $38,820 per year a. Compute the NPV for the project. Based on NPV, should the project be accepted? b. Compute the IRR for the project. Based on IRR, should the project be accepted? c. Compute the payback period for the project. Assume the required payback is 5 years, should the project be accepted?

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