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DEF Corporation is considering a project with an initial investment of $1,000,000. The expected net inflows are: Year Net Inflow 1 $180,000 2 $190,000 3
DEF Corporation is considering a project with an initial investment of $1,000,000. The expected net inflows are:
Year | Net Inflow |
1 | $180,000 |
2 | $190,000 |
3 | $200,000 |
4 | $210,000 |
5 | $220,000 |
Requirements:
- Calculate the Accounting Rate of Return (ARR).
- Determine the Payback Period.
- Compute the Net Present Value (NPV) at a discount rate of 8%.
- Calculate the Internal Rate of Return (IRR).
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