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An investment is expected to generate the following cash flows: Year 0 -$2,000,000 Year 1 $1,000,000 Year 2 $0 Year 3 $500,000 Year 4 $500,000
An investment is expected to generate the following cash flows: Year 0 -$2,000,000 Year 1 $1,000,000 Year 2 $0 Year 3 $500,000 Year 4 $500,000 Year 5 $100,000 The discount rate is 10% per year. a. What is the net present value of the investment? Show your work. b. What is the payback period of the investment? Show your work. c. What is the discounted payback period of the investment? Show your work
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