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Project X exhibits the following cash-flow pattern. Initial Investment $325,000 Year Cash-Flow 1 $140,000 2 $120,000 3 $100,000 4 $ 75,000 a. Calculate the net

Project X exhibits the following cash-flow pattern.

Initial Investment $325,000

Year Cash-Flow

1 $140,000

2 $120,000

3 $100,000

4 $ 75,000

a. Calculate the net present value and profitability index. Assume a cost of capital of 11%.

b. Calculate the projects IRR. Is this project acceptable?

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