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Bill plans to open a do-it-yourself dog bathing center in a storefront. The bathing equipment will cost $100,000. Bill expects the incremental net operating cash
Bill plans to open a do-it-yourself dog bathing center in a storefront. The bathing equipment will cost $100,000. Bill expects the incremental net operating cash flows to be $30,000 in the first year, $80,000 in the second year, and $60,000 in the third year, after which he plans to scrap the equipment and retire to the beaches of Jamaica. WACC is 10%. a. What is the project's NPV? (3 points) NPV= 38467 b. What is the project's discounted payback period? (8 points) year CF Discounted CF Cumulative discounted CF 0 -1000 - 1000 -1000 1 300 2 800 3 600 Discounted payback period= 2.25 years c. A project has the following cash flows: Year 0 1 2 3 4 Cash flows -$2,700 $650 +x +X $1,400 This project requires one outflows at Year O followed by four positive cash flows. Its WACC is 10%, and its MIRR is 7.8367%. Year 2 and Year 3 cash flows are equal. What is the Year 2 and Year 3 cash inflows? (7 points) Pv= fv= N= I= % X= Please answer all parts of the
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