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Cost of development is $5000, and you could be earning 5% on another investment instead. Cash flow: Year 1: 1000 Year 2: 1500 Year 3:
Cost of development is $5000, and you could be earning 5% on another investment instead.
Cash flow:
Year 1: 1000
Year 2: 1500
Year 3: 4000
a Find NPV
b Find discount rate
c Find IRR
d. do you accept the project?
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