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JAYCO is considering acquiring the manufacturer of a key component part used to build its automobiles. The acquisition cost is estimated at $2 million. JAYCO

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JAYCO is considering acquiring the manufacturer of a key component part used to build its automobiles. The acquisition cost is estimated at $2 million. JAYCO estimates annual cash flows of $120,000 in Year 1; $210,000 in Year 2: $450,000 in Year 3: $1,000,000 in Year 4; and $1,250,000 in Year 5. The required return for this project is 12%. What is the NPV of this project ($): A Should JAYCO accept or reject this project based on the NPV rule? What is the Payback period for this project in years (.e. 1.23 years)? A Should JAYCO accept or reject this project if they require a Payback period of 4 years? What is the IRR for this project (%): A Should JAYCO accept or reject this project based on the IRR

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