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Initial Investment: $5,500,000 Year 1: $1,200,000 Year 2: $2,300,000 Year 3: $3,000,000 Year 4: $1,500,000 Requirements: Compute the IRR. Calculate the NPV using an 8%

  • Initial Investment: $5,500,000
  • Year 1: $1,200,000
  • Year 2: $2,300,000
  • Year 3: $3,000,000
  • Year 4: $1,500,000

Requirements:

  1. Compute the IRR.
  2. Calculate the NPV using an 8% discount rate.
  3. Determine the payback period.
  4. Evaluate whether the project should be accepted if the required rate of return is 8%.

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