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A company is considering a project that has the following cash flows: C 0 = -5,000, C 1 = +900, C 2 = +2,500, C
A company is considering a project that has the following cash flows:
C0 = -5,000, C1 = +900, C2 = +2,500, C3 = +1,100, and C4 = +2,900 with a risk-adjusted discount rate of 12%.
- Calculate the Net Present Value (NPV), Internal Rate of Return (IRR), Profitability Index, and the Payback of this project.
- If you were the manager of the firm, will you accept or reject the project based on the calculation results above?
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