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NOP Corporation plans to invest $900,000 in a new software development project. The project is expected to generate annual cash inflows of $180,000 for 7

NOP Corporation plans to invest $900,000 in a new software development project. The project is expected to generate annual cash inflows of $180,000 for 7 years. The company's discount rate is 12%. The present value factors are:

Year

PV Factor at 12%

1

0.893

2

0.797

3

0.712

4

0.636

5

0.567

6

0.507

7

0.452

Requirements:

  1. Compute the total present value of the cash inflows.
  2. Calculate the NPV.
  3. Determine the payback period.
  4. Calculate the IRR.
  5. Discuss the project's financial feasibility.

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