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ABC Ltd. is considering investing in a project that costs $100,000. The project will generate the following cash inflows: Year 1: $20,000 Year 2: $30,000

ABC Ltd. is considering investing in a project that costs $100,000. The project will generate the following cash inflows:

  • Year 1: $20,000
  • Year 2: $30,000
  • Year 3: $40,000
  • Year 4: $50,000
  • Year 5: $60,000
Requirements: a) Calculate the NPV if the discount rate is 10%. b) Calculate the IRR. c) Calculate the payback period. d) Should ABC Ltd. invest in the project based on NPV and IRR?

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