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cost immediately: $4.9 million, with 20-year life expectancy, profits of $0.8 million per year throughout the life. at the end of the eleventh year will

cost immediately: $4.9 million, with 20-year life expectancy, profits of $0.8 million per year throughout the life.

at the end of the eleventh year will cost $1.7 million. At the end of 20th year additional cost of $1.1 million.

If WACC of 7% . . . .

a. What is the NPV?

b. What is the Profitability Index?

c. What is the payback period?

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