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Investment Proposal : Initial Cost: $200,000 Cash Inflows: Year 1: $50,000 Year 2: $60,000 Year 3: $70,000 Year 4: $80,000 Year 5: $90,000 Requirements :

  • Investment Proposal:
    • Initial Cost: $200,000
    • Cash Inflows:
      • Year 1: $50,000
      • Year 2: $60,000
      • Year 3: $70,000
      • Year 4: $80,000
      • Year 5: $90,000
  • Requirements:
    • Compute the NPV at a 10% discount rate.
    • Determine the IRR.
    • Calculate the Payback Period.
    • Evaluate the PI.
    • Assess the project’s ARR.

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