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An investment that costs $ 8 5 , 0 0 0 will return $ 2 5 , 0 0 0 per year for 5 years.

An investment that costs $85,000 will return $25,000 per year for 5 years. Determine the net present value of the investment if the required rate of return is 12%.(ignore taxes). Should the investment be undertaken? Additionally calculate the IRR and the payback period.

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