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Consider the following cash flows for an investment project by Pfizer Inc. for the year 2023: Year Cash Flow ($) 0 (1,000,000) 1 300,000 2

Consider the following cash flows for an investment project by Pfizer Inc. for the year 2023:

Year

Cash Flow ($)

0

(1,000,000)

1

300,000

2

400,000

3

500,000

4

200,000

Requirements:

  1. Calculate the Net Present Value (NPV) if the discount rate is 10%.
  2. Determine the Internal Rate of Return (IRR).
  3. Compute the Payback Period.
  4. Analyze the profitability of the project.
  5. Evaluate the impact of a 2% increase in the discount rate on NPV.

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