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3. A Project X initially costing $ 250,000 generates following cash flows. If the cost of capital is 12%, calculate a) Net Present Value b)
3. A Project X initially costing $ 250,000 generates following cash flows. If the cost of capital is 12%, calculate a) Net Present Value b) Profitability Index of the project.
Year
Cash flow
I
90,000
80,000
III
70,000
IV
60,000
V
50,000
Whether the project should be accepted or not?
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