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A tech company is planning to launch a new product line. The initial investment required is $300,000, and the product line is expected to generate

A tech company is planning to launch a new product line. The initial investment required is $300,000, and the product line is expected to generate annual net cash inflows of $70,000 for 5 years. The firm's required rate of return is 9%. Present value factors are:

Year

PV Factor at 9%

1

0.917

2

0.842

3

0.772

4

0.708

5

0.650

Requirements:

  1. Calculate the total present value of the cash inflows.
  2. Determine the NPV.
  3. Compute the payback period.
  4. Find the IRR.
  5. Evaluate the project's financial viability.

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