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A firm is evaluating a proposal that has an initial investment of $50,000 and cash flows of $15,000 per year for 5 years. The discount
A firm is evaluating a proposal that has an initial investment of $50,000 and cash flows of $15,000 per year for 5 years. The discount rate is 10%. Calculate the following, and show your work.
a. payback of the project
b. discounted payback
c. internal rate of return
d. profitability index
e. net present value
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