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Normal Body Text 1 No Spc.. 1Table. Heading 1 Heaing 2 Tile Font Paragraph Styles Problem 6(4 points) Mr. Graziano Pelle, the capital budgeting director
Normal Body Text 1 No Spc.. 1Table. Heading 1 Heaing 2 Tile Font Paragraph Styles Problem 6(4 points) Mr. Graziano Pelle, the capital budgeting director of Giovinco Corporation(GC), is evaluating a five year project, which will require an initial investment of $98,000 today. The expected end-of-year cash flows of the project are as follows: Year 1 Year 2 Year 3 Year 4: Year 5: $40,000 $29,000 $30,000 $10,000 $11,000 weighted average cost of capital of this project is 13%, and both target payback and discounted payback is 4 years. a. b. c. d. What is the IRR of this project? What is the NPV of this project? What is discounted payback of this project? What is the payback of this project
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