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Comparing all methods. Risky Business is looking at a project with the following estimated cash flow: Initial investment at start of project: $10,000,000 Cash
Comparing all methods. Risky Business is looking at a project with the following estimated cash flow: Initial investment at start of project: $10,000,000 Cash flow at end of year one: $1,600,000 Cash flow at end of years two through six: $2,000,000 each year Cash flow at end of years seven through nine: $1,920,000 each year Cash flow at end of year ten: $1,476,923 Risky Business wants to know the payback period, NPV, IRR, MIRR, and PI of this project. The appropriate discount rate for the project is 13%. If the cutoff period is six years for major projects, determine whether the management at Risky Business will accept or reject the project under the five different decision models.
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