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Projected Cash Flows Year Cash Inflow 0 ($7,500) 1 $2,500 2 $2,500 3 $2,500 4 $2,500 5 $2,500 Calculate the Net Present Value (NPV) at

Projected Cash Flows

Year

Cash Inflow

0

($7,500)

1

$2,500

2

$2,500

3

$2,500

4

$2,500

5

$2,500

  1. Calculate the Net Present Value (NPV) at a 10% discount rate.
  2. Determine the Internal Rate of Return (IRR).
  3. Compute the payback period.
  4. Assess the profitability index.
  5. Recommend whether to proceed with the project.

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