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I need help with the calculations on how to get to the above answers. 5. A firm can invest in a project for $1.25 mln,
I need help with the calculations on how to get to the above answers.
5. A firm can invest in a project for $1.25 mln, payable today. The project will provide cash inflows of $0.35 mln annually for 6 years. What is the payback period associated with the project if the WACC of the firm is 6%? a. 3.0 years b. 3.6 years c. 4.1 years d. You never recover your initial investment 6. What is the equivalent annual annuity associated with the project outlined in Question 5 above? a. $0.47 mln b. $10.44 mln c. $4.92 mln d. $0.10 minStep by Step Solution
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