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MNO Corporation is considering a project that requires an initial outlay of $750,000 and will produce the following cash inflows: Year 1: $200,000 Year 2:
MNO Corporation is considering a project that requires an initial outlay of $750,000 and will produce the following cash inflows:
- Year 1: $200,000
- Year 2: $220,000
- Year 3: $240,000
- Year 4: $260,000
- Year 5: $280,000
Requirements:
- Compute the payback period.
- Calculate the NPV at a discount rate of 11%.
- Calculate the IRR.
- Compute the profitability index.
- Assess whether MNO Corporation should undertake the project.
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