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Homework Assignment #2 A firm has estimated its cost of capital as 5% and is considering a project with an initial investment of-$265,000. The subsequent
Homework Assignment #2 A firm has estimated its cost of capital as 5% and is considering a project with an initial investment of-$265,000. The subsequent cash flows are $65,000; $77,000; $83,000; $91,000; and $96,000. In the final year (year #6), the firm must pay $50,000 to clean up the site. Calculate the project's NPV, Payback, Discounted Payback, PI, and MIRRs using the three methods discussed in class. Please provide timelines where appropriate, a description of all of your math, and calculator inputs. Homework Assignment #2 A firm has estimated its cost of capital as 5% and is considering a project with an initial investment of-$265,000. The subsequent cash flows are $65,000; $77,000; $83,000; $91,000; and $96,000. In the final year (year #6), the firm must pay $50,000 to clean up the site. Calculate the project's NPV, Payback, Discounted Payback, PI, and MIRRs using the three methods discussed in class. Please provide timelines where appropriate, a description of all of your math, and calculator inputs
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