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A company plans to invest $250,000 in a new venture with the following expected inflows: PROJECT K: Year 1: $70,000 Year 2: $60,000 Year 3:

A company plans to invest $250,000 in a new venture with the following expected inflows:

PROJECT K:
  • Year 1: $70,000
  • Year 2: $60,000
  • Year 3: $90,000
  • Year 4: $50,000
  • Year 5: $40,000
Required:
  1. Compute the Payback Period.
  2. Calculate the NPV at an 8% discount rate.
  3. Determine the IRR.
  4. Assess the profitability index.
  5. Calculate the discounted payback period.

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