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GHI Ltd. is planning to invest in a project that requires $1,200,000 upfront. The project will bring in the following cash inflows: Year 1: $200,000
GHI Ltd. is planning to invest in a project that requires $1,200,000 upfront. The project will bring in the following cash inflows:
- Year 1: $200,000
- Year 2: $210,000
- Year 3: $220,000
- Year 4: $230,000
- Year 5: $240,000
Requirements:
- Calculate the Accounting Rate of Return (ARR).
- Determine the Payback Period.
- Compute the Net Present Value (NPV) at a 10% discount rate.
- Find the Internal Rate of Return (IRR).
- Analyze and decide if the project is financially viable.
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