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A project with an initial investment of $600,000 is expected to yield the following returns: PROJECT G: Year 1: $160,000 Year 2: $150,000 Year 3:

A project with an initial investment of $600,000 is expected to yield the following returns:

PROJECT G:
  • Year 1: $160,000
  • Year 2: $150,000
  • Year 3: $170,000
  • Year 4: $110,000
  • Year 5: $90,000
Required:
  1. Compute the Payback Period.
  2. Calculate the NPV at a 10% discount rate.
  3. Determine the IRR.
  4. Evaluate the profitability index.
  5. Calculate the discounted payback period.

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