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Parts e and f 4. Suppose an investment project has the following cash flows: Year 0 1 2 3 4 Cash Flow -125,000 75,000 55,000
Parts e and f
4. Suppose an investment project has the following cash flows: Year 0 1 2 3 4 Cash Flow -125,000 75,000 55,000 25,000 10,000 - 10,000 The firm's WACC is 10%. a. Compute the project's NPV. b. Compute the project's IRR. C. Compute the payback period. d. Compute MIRR if cash flows are reinvested at 10%. e. Will the project be accepted? Why? f. If the WACC is 15%, will the project be accepted? WhyStep by Step Solution
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