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A company plans to invest $350,000 in a project with the following cash inflows. Calculate the NPV, IRR, and payback period. Use a discount rate

A company plans to invest $350,000 in a project with the following cash inflows. Calculate the NPV, IRR, and payback period. Use a discount rate of 8%.

Cash Flows:

  • Year 1: $80,000
  • Year 2: $90,000
  • Year 3: $100,000
  • Year 4: $110,000
  • Year 5: $120,000

Requirements:

  1. Calculate the payback period.
  2. Calculate the NPV.
  3. Calculate the IRR.
  4. Compare the IRR to the company's required rate of return of 8%.

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