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Consider an investment that costs $ 180,000 and has a cash inflow of $35,000 every year for 8 years, growing at a rate of 5%
Consider an investment that costs $ 180,000 and has a cash inflow of $35,000 every year for 8 years, growing at a rate of 5% a year. Also assume that there is a year 8 terminal/salvage value of $30,000. The required rate of return is 15% and the required payback period is 4 years.
What is the payback period? What is the discounted payback period? What is the NPV? What is the IRR?
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