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ARK International (US based) is operating in Globania, a country in Asia. Unfortunately, the Globania government insists that any project cash flows can only be
ARK International (US based) is operating in Globania, a country in Asia. Unfortunately, the Globania government insists that any project cash flows can only be repatriated (sent back to the home country) when the project is terminated. Fortunately, the firm pays 8% interest per year for funds held up in this manner. Ignoring exchange rates, compute the NPV, the IRR, the payback, adjusted payback, and the profitability index for a project undertaken by ARK in Globania with cash flows as follows: Assume the weighted average cost of capital is 10%. Should the project be accepted or rejected? Briefly explain your criteria and your decision choice
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