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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)

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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) Profitability Index of the project. Year Cash flow 90,000 ul 80,000 III 70,000 60,000 2 > 50,000 Whether the project should be accepted or not? (8M)

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