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Comparing all methods. Risky Business is looking at a project with the following estimated cash flow: B. Risky Business wants to know the payback period,
Comparing all methods. Risky Business is looking at a project with the following estimated cash flow: B. Risky Business wants to know the payback period, NPV, IRR, MIRR, and Pl of this project. The appropriate discount rate for the project is 11%. If the cutoff period is 6 years for major projects, determine whether the management at Risky Business will accept or reject the project under the five different decision models. Data Table What is the payback period for the new project at Risky Business? years (Round to two decimal places.) (Click on the following icon in order to copy its contents into a spreadsheet.) Initial investment at start of project: $14,000,000 Cash flow at end of year one: $2,240,000 Cash flow at end of years two through six: $2,800,000 each year Cash flow at end of years seven through nine: $2,912,000 each year Cash flow at end of year ten: $2,080,000 Print Done
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