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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:

  1. Calculate the NPV of the project.
  2. Determine if the project is acceptable based on the NPV rule.
  3. Calculate the Payback Period.
  4. Calculate the Internal Rate of Return (IRR).

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