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Consider the following cash flow. Assume that the discount rate is 15%. Time (years) 0 1.5 2 5 CASH FLOW -1000 400 400 500 a)

Consider the following cash flow. Assume that the discount rate is 15%.

Time (years) 0 1.5 2 5
CASH FLOW -1000 400 400 500

a) Obtain NPV. Interpret the result.

b) Obtain payback. Interpret the result.

c) Obtain discounted payback. Interpret the result.

d) Obtain IRR. Interpret the result.

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