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please there is some questions that is link to each other please answer me all questions Fast ASAP i know chegg not allowed to all
please there is some questions that is link to each other please answer me all questions Fast ASAP i know chegg not allowed to all but that is link to each other
Use the following information for Questions 7 through 10: You are heading the R&D department of a growing biotech company. You have identified an investment opportunity that would require a $5 million investment upfront in terms of personnel and lab equipment and subsequent cash outflows of $500,000 per year. The company did a market study that suggests a cash revenue stream of $2.15 million per year for three years and then $1.6 million per year for another three years. At the end of the sixth year, it is estimated that the lab equipment could be sold for a salvage value of $200,000. Assume that all of the cash flows are net of taxes. In terms of risk, the project would be similar to others in the firm, which uses a hurdle rate of 18%. Question 7 10 Points From a purely economic perspective, should you invest in this project? 0 No, because you are not able to exactly estimate a discount rate for NPV calculation No, because it has a negative NPV Yes, because it has a positive NPV Yes because the IRR equals your average yield on the baseball card investment Question 8 10 Points What is the IRR of the project? O 18% 0 19% O 21% 20% Question 9 10 Points What is the payback period for this project? 0 impossible to determine from the information given O between 3 and 4 years O between 1 and 2 years 0 between 2 and 3 years Question 10 10 Points What is the profitability index for this project? 2.04 0 impossible to determine from the information given 0 1.02 0 3.05
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