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A firm is considering purchasing equipment that will cost $1,000,000. The equipment will generate new annual cash flows of $250,000 for the next six years.
A firm is considering purchasing equipment that will cost $1,000,000. The equipment will generate new annual cash flows of $250,000 for the next six years. All cash flows are positive #s and are collected at the end of the year. The firm's required rate of return is 8%. The payback period is: The net present value ("NPV") is: The profitability index is: The internal rate of return for this project is
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