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A company is considering investing $250,000 in a new project. The project will yield the following annual cash inflows: PROJECT D: Year 1: $70,000 Year

A company is considering investing $250,000 in a new project. The project will yield the following annual cash inflows:

PROJECT D:
  • Year 1: $70,000
  • Year 2: $80,000
  • Year 3: $90,000
  • Year 4: $60,000
  • Year 5: $50,000
Required:
  1. Compute the Payback Period.
  2. Calculate the NPV at a discount rate of 10%.
  3. Determine the IRR.
  4. Assess the project's profitability index.
  5. Calculate the payback period if the cash inflows are discounted at 10%.

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