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number 2 - NPV and other investment criteria/ essay The company is considering a project. The following shows the resulting project cash flow, namely Year

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number 2 - NPV and other investment criteria/ essay The company is considering a project. The following shows the resulting project cash flow, namely Year 1 of $ 6,100, Year Il of $ 7,800, Year III of $ 8,400 and Year IV of $ 6,500. From the cashflows above, the company must initially spend $ 18,000. Based on the policy, the company has the following project acceptance criteria: Net Present Value 2 $5000 Profitability Index 2 1,15 Payback Period s 3 years The Project Manager is very confident that this project will get the Discounted Payback Period in exactly three years. Based on the predicted DPP, the project manager wants to get a project decision based on the company policy above, you are asked to: a. Calculate the required rate of return based on the cash flow above. (8 points) b. Determine the feasibility of the project from each of the above criteria (12 points)

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