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Delta Inc. needs to decide on an investment with the following details: Initial investment: $400,000 Projected annual savings of $100,000 for six years. Requirements: Determine

Delta Inc. needs to decide on an investment with the following details:

Initial investment: $400,000
Projected annual savings of $100,000 for six years.

Requirements:

Determine the NPV using a 6% discount rate.
Calculate the payback period.
Find the IRR.
Assess the investment’s profitability index.

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