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A company is considering a project that requires an initial outlay of $25,000 and is expected to generate cash inflows of $6,000 annually for 5

A company is considering a project that requires an initial outlay of $25,000 and is expected to generate cash inflows of $6,000 annually for 5 years. The company's discount rate is 13%.

  1. Compute the Net Present Value (NPV) of the project.
  2. Calculate the Internal Rate of Return (IRR).
  3. Determine the payback period.
  4. Compute the accounting rate of return (ARR) if the average investment is $12,500.
  5. Based on these calculations, should the project be accepted?

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