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A company is considering a project with the following cash flows. Calculate the Net Present Value (NPV) of the project if the discount rate is
A company is considering a project with the following cash flows. Calculate the Net Present Value (NPV) of the project if the discount rate is 10%.
Cash Flows:
- Year 0: -$50,000
- Year 1: $20,000
- Year 2: $25,000
- Year 3: $30,000
- Year 4: $35,000
Requirements:
- Calculate the NPV of the project.
- Determine if the project is acceptable based on the NPV rule.
- Calculate the Payback Period.
- Calculate the Internal Rate of Return (IRR).
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