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A project has the following projected cash flows: Year Cash Flow 0 -$30,000 1 20,000 2 14,000 3 11,000 4 7,000 Suppose the required rate

A project has the following projected cash flows:

Year Cash Flow

0 -$30,000

1 20,000

2 14,000

3 11,000

4 7,000

Suppose the required rate of return on these projects is 8 percent.

What is the projects payback period?

What is the projects IRR.

What is the projects NPV?

What is the EAA (Equivalent Annual Annuity) payment?

Should the project be accepted or rejected? Why?

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