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Creighton, Inc. has invested $2,165,800 on equipment. The company anticipates cash flows of $424,386, $512,178, $561,755, $764,997, $816,500, and $825,375 over the next six years.

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Creighton, Inc. has invested $2,165,800 on equipment. The company anticipates cash flows of $424,386, $512,178, $561,755, $764,997, $816,500, and $825,375 over the next six years. The cost of capital is 7 percent. What is the NPV, payback period, and discounted payback period and should the firm accept this project based on discounted payback period if the benchmark is 4.5 years? (Round your answer to two decimal places.) Decision making Yes NPV 852,485.92 732,458.12 852,485.92 732,458.12 A) B) C) D) Payback period 3.87 3.97 3.87 3.97 Discounted payback period 4.48 4.48 4.68 4.68 Yes No

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