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An investment of$175today is expected to bring the future cash flows for years 1 to 4 shown below. After the 4th year cash flows are
An investment of$175today is expected to bring the future cash flows for years 1 to 4 shown below.After the 4th year cash flows are expected to grow at the given long term growth rate forever.Find the NPV, IRR, & payback period of the investment.
Inputs Discount rate35.0%. Long term growth rate 4.0%
Period 0 12 3 4
Cash flows($175.00)$125.00$80.00$200.00$210.00
Net Present ValueUse the NPV
Internal Rate of ReturnUse the IRR function
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