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Given the mor below. Year O Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow Year
Given the mor below. Year O Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow Year 5 Cash Flow Project Z -172,800 86,400 69,120 54,720 34,560 17,280 With a discount rate of 12.5% discount rate, a. Determine the payback period and discuss whether this project should be accepted if the cut-off period set by the company for such projects is 3 years [2 marks] b. Determine the net present value and discuss whether this project should be accepted. [3.5 marks] c. Show that the IRR of the project is approximately 20.826% and discuss whether this project should be accepted. [3.5 marks] d. Should the project be accepted finally? [1 mark] Show your working clearly and provide your answer to 2 decimal places. (Total 10 marks)
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