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QRS Industries is reviewing a capital project that entails: Initial outlay: $500,000 Annual cash flows: Year 1: $120,000 Year 2: $130,000 Year 3: $140,000 Year
QRS Industries is reviewing a capital project that entails:
- Initial outlay: $500,000
- Annual cash flows:
- Year 1: $120,000
- Year 2: $130,000
- Year 3: $140,000
- Year 4: $150,000
Requirements:
- Calculate the NPV at an 8% discount rate.
- Find the payback period.
- Determine the IRR.
- Compute the accounting rate of return (ARR).
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