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P12.4 (Payback, ARR, NPV) Tropic Investments is considering a project involving an initial cash outlay for an asset of $200,000. The asset is depreciated over

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P12.4 (Payback, ARR, NPV) Tropic Investments is considering a project involving an initial cash outlay for an asset of $200,000. The asset is depreciated over five years at 20% per year (based on the value of the investment at the beginning of each year). The cash flows from the project are expected to be as follows: Inflow Outflow Year 1 $ 75,000 $30,000 Year 2 90,000 40,000 Year 3 100,000 45,000 Year 4 100,000 50,000 Year 5 75,000 40,000

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