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Dawn's Drinks are evaluating an incremental bottling line which has a cost of $100,000 upfront. The line would contribute cash flow of $40,000 in Year
Dawn's Drinks are evaluating an incremental bottling line which has a cost of $100,000 upfront. The line would contribute cash flow of $40,000 in Year 1, $35,000 in Year 2, $25,000 in Year 3, $20,000 in Year 4, and $10,000 in Year 5. Her required rate of return is 10%.
A) What is the projects NPV?
B) What is the projects IRR?
C) What is the projects Discounted Payback Period?
Please solve by hand.
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