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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%:

  1. Calculate the net present value (NPV).
  2. Determine the internal rate of return (IRR).
  3. Compute the payback period.
  4. Calculate the profitability index (PI).
  5. Should the project be accepted?

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