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Garden-Grow Products is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year

Garden-Grow Products is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero salvage value, and would require some additional working capital that would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's life. (Hint: Cash flows are constant in Years 1 to 3.)

Project cost of capital (r)

10.0%

Net investment in fixed assets (basis)

$75,000

Required new working capital

$15,000

Straight-line deprec. rate

33.333%

Sales revenues, each year

$75,000

Operating costs (excl. deprec.), each year

$25,000

Tax rate

35.0%

NPV = $23,852

Looking at the previous question, please compute the IRR, MIRR and both the payback and discounted payback.

IRR =

MIRR =

Payback =

Discounted Payback =

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