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Latavia Inc. considers an investment project which is expected to generate the following free cash flows in the next 5 years: The relevant discount rate

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Latavia Inc. considers an investment project which is expected to generate the following free cash flows in the next 5 years: The relevant discount rate of the project is 20% and the cost of the project is $400,000. The firm evaluates the feasibility of this investment based on the net PV method and the discounted payback method. The CEO of the company demands payback in three years. a) Is that project feasible according to the net PV method? b) Is that project feasible according to the discounted payback method if the target payback period is three years? c) If there is a contradiction between the results of these two methods; which one is the more reliable approach

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