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PLEASE HELP WITH D1, D2, AND E! A project that costs $2,300 to install will provide annual cash flows of $580 for the next 5
PLEASE HELP WITH D1, D2, AND E!
A project that costs $2,300 to install will provide annual cash flows of $580 for the next 5 years. The firm accepts projects with payback periods of less than 4 years. a. What is this project's payback period? (Round your answer to 3 decimal places.) b. Will the project be accepted? c-1. What is project NPV if the discount rate is 2%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) c-2. Should this project be pursued? d-1. What is project NPV if the discount rate is 11%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) d-2. Should this project be pursued? e. Will the firm's decision change as the discount rate changes? Answer is not complete. Years 3.965 Yes b. $ 433.81 Payback period Will the project be accepted? NPV of the project if the discount rate is 2% Should this project be pursued? NPV of the project if the discount rate is 11% Should this project be pursued? Will the firm's decision change as the discount rate changes? 1. C- 2 d. 1. d. 2 e. YesStep by Step Solution
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