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Decision-Making with Relevant Costs at Google Values: Initial Investment: $5,000,000 Annual Cash Inflows: $1,200,000 Project Life: 5 years Discount Rate: 8% Requirements: Calculate the NPV

Decision-Making with Relevant Costs at Google

    • Values:
      • Initial Investment: $5,000,000
      • Annual Cash Inflows: $1,200,000
      • Project Life: 5 years
      • Discount Rate: 8%
    • Requirements:
      1. Calculate the NPV of the project for Google.
      2. Determine the IRR and payback period.
      3. Discuss how relevant costs influence investment decisions.
      4. Recommend whether Google should proceed with the project.

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