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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 required
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 required payback is 4 years.
What is the payback period?
What is the NPV?
What is the IRR?
Would it be a good idea to accept the project?
What decision rule should be the primary decision method?
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