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Initial Investment: $9,000 Annual Cash Inflows: $2,500 for 7 years Cost of Capital: 10% Calculate the Net Present Value (NPV). Compute the Internal Rate of

  • Initial Investment: $9,000
  • Annual Cash Inflows: $2,500 for 7 years
  • Cost of Capital: 10%
  • Calculate the Net Present Value (NPV).
  • Compute the Internal Rate of Return (IRR).
  • Determine the payback period.
  • Assess the profitability index.
  • Should the project be accepted?

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