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Financial Data for Investment Analysis (in $) Initial Outlay : $50,000 Projected Cash Flows : Year 1: $10,000 Year 2: $15,000 Year 3: $20,000 Year
Financial Data for Investment Analysis (in $)
- Initial Outlay: $50,000
- Projected Cash Flows:
- Year 1: $10,000
- Year 2: $15,000
- Year 3: $20,000
- Year 4: $25,000
- Year 5: $30,000
- Calculate the NPV at an 11% discount rate.
- Determine the IRR for the investment.
- Compute the Profitability Index.
- Assess the viability of the investment based on NPV and IRR.
- Perform a sensitivity analysis with a 9% and 13% discount rate.
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