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An initial investment of $200,000 is planned for Project H, which will provide the following cash inflows: PROJECT H: Year 1: $60,000 Year 2: $80,000

An initial investment of $200,000 is planned for Project H, which will provide the following cash inflows:

PROJECT H:
  • Year 1: $60,000
  • Year 2: $80,000
  • Year 3: $70,000
  • Year 4: $40,000
  • Year 5: $30,000
Required:
  1. Compute the Payback Period.
  2. Calculate the NPV at a discount rate of 11%.
  3. Determine the IRR.
  4. Assess the profitability index.
  5. Calculate the payback period with the cash inflows discounted at 11%.

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