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An initial investment of $300,000 is required for a project. The net cash flows expected are as follows: Year Net Cash Flows 1 $60,000 2

An initial investment of $300,000 is required for a project. The net cash flows expected are as follows:

Year

Net Cash Flows

1

$60,000

2

$70,000

3

$80,000

4

$90,000

5

$100,000

6

$110,000

Requirements:

  1. Calculate the cumulative net cash flows.
  2. Determine the payback period.
  3. Compute the NPV at a 6% discount rate.
Calculate the IRR.

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