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Initial investment: $150,000 Yearly net inflows: Year 1: $40,000 Year 2: $45,000 Year 3: $35,000 Year 4: $60,000 Requirements: Calculate the payback period. Find the

  • Initial investment: $150,000
  • Yearly net inflows:
    • Year 1: $40,000
    • Year 2: $45,000
    • Year 3: $35,000
    • Year 4: $60,000
  • Requirements:
    • Calculate the payback period.
    • Find the net present value (NPV) at a discount rate of 10%.
    • Determine the internal rate of return (IRR).
    • Compute the profitability index.

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