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CAPITAL BUDGETING. PLEASE SHOW WORK 3. (15 pts) Given the following cash flows, and a required return(cost of capital, isk-adjusted-discount-rate) of 15%, answer the questions
CAPITAL BUDGETING. PLEASE SHOW WORK
3. (15 pts) Given the following cash flows, and a required return(cost of capital, isk-adjusted-discount-rate) of 15%, answer the questions below. Tremont Designs 1 OCF1 2 OCF2 3 OCF3 4 OCF4 OCF5 15% 0 Initial Outlay (350,000) 100,000 100,000 100,000 100,000 150,000 a. What is the project's projected Payback period? The firm's payback requirement is 2 years. b. What is the project's projected NPV? c. What is the project's projected Profitability index? d. What is the project's projected internal rate of returnStep by Step Solution
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