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A firm with a 20% cost of capital and a cutoff payback period of 2.5 years faces the following capital investment opportunity Year 0 Year

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A firm with a 20% cost of capital and a cutoff payback period of 2.5 years faces the following capital investment opportunity Year 0 Year 1 Year 2 Year 3 Year 4 -1,000,000 150,000 300,000 625,000 650,000 (A) What is the project's expected payback period? (B) According to the payback period method of capital budgeting, is this an acceptable project? Why or why not? (C) What is the project's expected NPV? (D) According to the NPV method of capital budgeting, is this an acceptable project? Why or why not? (E) Is this an acceptable project? Why or why not? Edit View Insert Format Tools Table 12ptv Paragraph & Tv

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