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Project H Cash Flows Year Cash Flow 0 -$10,000 1 $2,500 2 $2,700 3 $3,000 4 $3,200 5 $3,500 Using a discount rate of 10%:

Project H Cash Flows

Year

Cash Flow

0

-$10,000

1

$2,500

2

$2,700

3

$3,000

4

$3,200

5

$3,500

Using a discount rate of 10%:

  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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