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Q3. A project has the following cash flow with a discount rate of 12% : Annual cash flows: $520,000 is used in purchasing an equipment
Q3. A project has the following cash flow with a discount rate of 12% : Annual cash flows: $520,000 is used in purchasing an equipment for the project only. Compute the following: A. Payback period; B. Discounted Payback period; C. NPV; D. Profitability Index; E. Average Accounting Return, assuming that the cash flow shown is the income before tax and depreciation and ignoring the tax effects. F. Should the project be accepted. Explain
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