ABC Company is considering an investment of $15,000, which produces the following inflows: Year 1 = $8000, Year 2 = $7000, Year 3 = $4000,
ABC Company is considering an investment of $15,000, which produces the following inflows: Year 1 = $8000, Year 2 = $7000, Year 3 = $4000, Year 4 = $2000 You are going to use the net present value profile to approximate the value for the internal rate of return. Please follow these steps: 1. Calculate payback period for the project. 2. Determine the net present value of the project based on a 5% discount rate. 3. Determine the net present value of the project based on a 10 percent discount rate. 4. Determine the net present value of the project based on a 20 percent discount rate.
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