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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
Consider an investment that costs $ and has
a cash inflow of $ every year for years. The
required return is and required payback is
years.
What is the payback period?
What is the NPV
What is the IRR?
Should we accept the project?
What decision rule should be the primary decision
method?
When is the IRR rule unreliable?
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