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Initial Outlay: $2,500,000 Year 1: $1,000,000 Year 2: $1,200,000 Year 3: $1,500,000 Year 4: -$500,000 Requirements: Calculate the IRR. Determine the NPV using a discount
- Initial Outlay: $2,500,000
- Year 1: $1,000,000
- Year 2: $1,200,000
- Year 3: $1,500,000
- Year 4: -$500,000
Requirements:
- Calculate the IRR.
- Determine the NPV using a discount rate of 11%.
- Evaluate the project’s profitability index.
- Assess the project’s viability considering a required rate of return of 11%.
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Financial Accounting
Authors: Jan Williams, Susan Haka
17th Edition
126000645X, 9781260006452
