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Eddie Corporation has a project with the following cash flows: (remember the year zero number is negative) Year 0 Year 1 Year 2 Year 3

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Eddie Corporation has a project with the following cash flows: (remember the year zero number is negative) Year 0 Year 1 Year 2 Year 3 Year 4 Cash flows -$1,000,000 $300,000 $400,000 $500,000 $500,000 Using a 9% cost of capital, what is the net present value of this project? Assume that Project E is mutually exclusive to Project B above. Using net present value to make the decision -- should this project be accepted over Project B? Using a 9% cost of capital, what is the profitability index for this project? Assume that Project E is mutually exclusive to Project B above. Using the profitability index method to make the decision -- should this project be accepted over Project B? Using a 9% cost of capital, what is the internal rate of return for this project? Assume that Project E is mutually exclusive to Project B above. Using the internal rate of return method to make the decision -- should this project be accepted over Project B? Using a 9% cost of capital, what is the payback period for this project? Assume that Project E is mutually exclusive to Project B above. Using the payback method to make the decision -- should this project be accepted over Project B? Using a 9% cost of capital, what is the present value payback period for this project? Assume that Project E is mutually exclusive to Project B above. Using present value payback method to make the decision -- should this project be accepted over Project B? Which project should be selected

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