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A project will generate after-tax incremental free cash flows of $5,000 per year for the next 10 years. It costs $20,000 to pursue. The required

    A project will generate after-tax incremental free cash flows of $5,000 per year for the next 10 years. It costs $20,000 to pursue. The required return on the project is 15%.

    a.What is the NPV?
    b. What is the profitability index?
    c.What is the payback period?

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