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Need HELP!! ASAP!! A project that requires an initial investment of $120,000 is expected to have an after-tax cash flow of $20,000 per year for
Need HELP!! ASAP!!
A project that requires an initial investment of $120,000 is expected to have an after-tax cash flow of $20,000 per year for the first two years, $40,000 per year for the next two years, and $50,000 for the fifth year?
a. What is the NPV of the project using a discount rate of 10%?
b. What is the IRR of the project?
c. What decision would you make regarding this project if the required rate of return is 10%?
d. What is the equivalent annual annuity using a 10% required rate of return?
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