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Consider an investment that costs 1 0 0 , 0 0 0 and has a cash inflow of 2 5 , 0 0 0 every

Consider an investment that costs 100,000 and has a cash inflow of 25,000
every year for 5 years. The required return is 9%, and payback cutoff is 4 years.
a) What is the payback period?
b) What is the r?
c) What is the AAR?
d) What is the discounted payback period?
e) What is the NPV?
f) What is the IRR?
g) What is the PI?
h) What method should be the primary decision rule? Should we accept the project?

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