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Initial Investment : $150,000 Expected Net Cash Inflows : Year 1: $40,000 Year 2: $50,000 Year 3: $60,000 Year 4: $70,000 Year 5: $80,000 Requirements

  • Initial Investment: $150,000
  • Expected Net Cash Inflows:
    • Year 1: $40,000
    • Year 2: $50,000
    • Year 3: $60,000
    • Year 4: $70,000
    • Year 5: $80,000
  • Requirements:
    • Calculate the Net Present Value (NPV) at a discount rate of 8%.
    • Determine the Internal Rate of Return (IRR).
    • Compute the Payback Period.
    • Assess the Profitability Index (PI).

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