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Consider an investment which costs $1,000,000 and has a cash inflow of $200,000 every year for 8 years. The required return is 12%, and the
Consider an investment which costs $1,000,000 and has a cash
inflow of $200,000 every year for 8 years. The required return is 12%, and the required payback is 5 years.
What is the payback period?
What is the NPV?
What is the IRR?
What is the profitability index?
Should we accept the project?
How are the decisions based on NPV and IRR related?
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