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Evaluate a 4-year project costing $25,000 and returning $8,000 annually using the pay payback period technique and a 3-year cutoff. Evaluate the project above using
- Evaluate a 4-year project costing $25,000 and returning $8,000 annually using the pay payback period technique and a 3-year cutoff.
- Evaluate the project above using the NPV method and a 12% required rate.
**I only need the answer to #2. Problem #1 is connected with #2. Please explain in detail how to solve step by step, thank you!
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Introduces Quantitative Finance
Authors: Paul Wilmott
2nd edition
470319585, 470319581, 978-0470319581
