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A project is expected to generate the after-tax cash flows shown below. The company's weighted average cost of capital is 8.5% per year, its tax

A project is expected to generate the after-tax cash flows shown below. The company's weighted average cost of capital is 8.5% per year, its tax rate is 35%, its beta is 0.9, and its retention ratio is 40%. The risk-free rate is 3% per year and the market risk premium is 5% per year. What are the project's payback period, net present value, profitability index, internal rate of return, and modified internal rate of return? Should the company pursue the project?

Year Year Year Year Year
0 1 2 3 4
Cash Flow -1,800 600 600 600 600

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