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ARK International (US based) is operating in Globania, a country in Asia. Ignoring exchange rates, compute the NPV, the IRR, the payback, adjusted payback, and
ARK International (US based) is operating in Globania, a country in Asia. 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: YEAR CASH FLOWS 0 ($3,000,000) 1 $900,000 2 $1,000,000 3 $1,300,000 4 $1,400,000 5 $ 5,000,000 Assume the weighted average cost of capital is 11%. Also assume that cash flows are received at the end of the year. Should the project be accepted or rejected? Briefly explain your criteria and your decision choice
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