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Craigco is considering an investment that will cost $250,000 and last for five years. The investment will be a straight-line basis over that period. Earnings

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Craigco is considering an investment that will cost $250,000 and last for five years. The investment will be a straight-line basis over that period. Earnings generated by the investment before amortization and the over period are as follows: Year 1 $65,000 Year 2 $67,000 Year 3 $71,000 Year 4 $75,000 Year 5 $80,000 19 Calculate the Average Accounting Return of the Project (3 marks) b) I Calculate the Payback Penod of this project (3 marks) Calculate the Net Present value of this project assuming a 10% interest rate (5 marks) d) Calculate the Profitability Index of the project assuming a 10% interest rate (2 marks) e) Calculate the Internal Rate of Return of the project (2 marks)

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