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Project C Cash Flows Year Cash Flow 0 -$4,500 1 $1,000 2 $1,100 3 $1,200 4 $1,500 5 $1,600 Given a cost of capital of
Project C Cash Flows
Year | Cash Flow |
0 | -$4,500 |
1 | $1,000 |
2 | $1,100 |
3 | $1,200 |
4 | $1,500 |
5 | $1,600 |
Given a cost of capital of 14%:
- Calculate the net present value (NPV).
- Determine the internal rate of return (IRR).
- Compute the payback period.
- Calculate the profitability index (PI).
- Should the project be accepted?
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