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A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years and a cost of capital of

A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years and a cost of capital of 11%.

Year

Cash Flow

Pv @11%

Discounted Cash flows

0

-40000

1.000

-40000

1

-9000

0.9009

8108.11

2

-9000

0.8116

7304.60

3

-9000

0.7312

6580.72

4

-9000

0.6587

5928.58

5

-9000

0.5935

5341.06

6

-9000

0.5346

4811.77

7

-9000

0.4817

4334.93

IRR

12.84%

NPV

$2409.77

a. What is the projects IRR?

b. What is the project's MIRR?

c. What is the project's PI?

d. What is the projects payback period?

e. What is the project's discounted payback period?

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