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Project J Cash Flows Year Cash Flow 0 -$4,000 1 $900 2 $1,100 3 $1,300 4 $1,500 5 $1,700 Given a discount rate of 16%:
Project J Cash Flows
Year | Cash Flow |
0 | -$4,000 |
1 | $900 |
2 | $1,100 |
3 | $1,300 |
4 | $1,500 |
5 | $1,700 |
Given a discount rate of 16%:
- Calculate the net present value (NPV).
- Determine the internal rate of return (IRR).
- Compute the payback period.
- Calculate the profitability index (PI).
- Assess the acceptance of the project based on NPV and IRR.
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