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Project A Cash Flows Year Cash Flow 0 -$3,000 1 $800 2 $900 3 $1,100 4 $1,200 5 $1,400 Given the information in Table 1
Project A Cash Flows
Year | Cash Flow |
0 | -$3,000 |
1 | $800 |
2 | $900 |
3 | $1,100 |
4 | $1,200 |
5 | $1,400 |
Given the information in Table 1 and a 12% cost of capital:
- Calculate the net present value (NPV).
- Determine the internal rate of return (IRR).
- Calculate the payback period.
- Compute the profitability index (PI).
- Should the project be accepted?
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