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Al Habib Company is considering a project that calls for an initial cash outlay of $55,000. The expected net cash inflows from the project are

  1. Al Habib Company is considering a project that calls for an initial cash outlay of $55,000. The expected net cash inflows from the project are $6,514 for each of (assume a whole number value between 6-10 years). What is the IRR of the project?
  2. A project requiring an initial investment of Rs. 205,000 would result in cash inflows of Rs. 75,000 in year 1, Rs. 55,000 in year 2, Rs. 60,000 in year 3, Rs. 60,000 in year 4, Rs. 45,000 in year 5 and Rs. 35,000 in year 6. The required rate in the market is (assume a rate between 10%-15%). Calculate the following:

  1. PBP 2. ARR 3. DPBP 4. NPV 5. IRR 6. PI

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