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Investment Analysis : Initial Cost : $10,000 Cash Flow Projections : Year 1: $2,200 Year 2: $2,300 Year 3: $2,400 Year 4: $2,500 Year
Investment Analysis: Initial Cost: $10,000
Cash Flow Projections:
- Year 1: $2,200
- Year 2: $2,300
- Year 3: $2,400
- Year 4: $2,500
- Year 5: $2,600
Cost of Capital: 15%
Requirements:
- Calculate the net present value (NPV).
- Compute the internal rate of return (IRR).
- Determine the discounted payback period.
- Evaluate the profitability index (PI).
- Should the project be accepted based on IRR?
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