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Payback Period and NPV Analysis : Calculate the payback period and NPV for a project with an initial investment of $100,000 and expected annual cash

  1. Payback Period and NPV Analysis: Calculate the payback period and NPV for a project with an initial investment of $100,000 and expected annual cash inflows of $25,000 for 6 years. Use a discount rate of 7%. Compare the results and discuss the advantages and limitations of each method.

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