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Microsoft Corporation is evaluating a potential investment project with the following cash flows: Initial Investment: $50 million Year 1 Cash Flow: $15 million Year 2
Microsoft Corporation is evaluating a potential investment project with the following cash flows:
- Initial Investment: $50 million
- Year 1 Cash Flow: $15 million
- Year 2 Cash Flow: $20 million
- Year 3 Cash Flow: $25 million If Microsoft's cost of capital is 10%, calculate the project's: a) Net Present Value (NPV) b) Internal Rate of Return (IRR) c) Profitability Index (PI)
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