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Investment Opportunity : Initial Investment: $400,000 Cash Flows: Year 1: $100,000 Year 2: $120,000 Year 3: $140,000 Year 4: $160,000 Requirements : Compute the NPV

  • Investment Opportunity:
    • Initial Investment: $400,000
    • Cash Flows:
      • Year 1: $100,000
      • Year 2: $120,000
      • Year 3: $140,000
      • Year 4: $160,000
  • Requirements:
    • Compute the NPV at an 11% discount rate.
    • Determine the IRR.
    • Calculate the Payback Period.
    • Evaluate the project’s PI.
    • Assess the Sensitivity Analysis for a 2% change in discount rate.

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