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A firm is contemplating starting a project that will require an investment amount of $ 5 0 0 K today. The project s future cash

A firm is contemplating starting a project that will require an investment amount of $500K today. The projects future cash flows are estimated to be: $80K, $140K,300K,100K in years 1-4, respectively.
a. If the WACC =5%, what is the NPV?
b. Should the firm accept or reject this project?
c. What is the firms IRR?
d. What is the firms payback period if WACC =5%?
e. What is the firms discounted payback period if WACC =5%?
f. Draw (sketch) the NPV profile of this project, clearly labeling the axis intercepts.

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