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Question 16 A business will cost $100,000 to set up and is expected to generate the following yearly net cash flows: year 1 = -$20,000;

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Question 16 A business will cost $100,000 to set up and is expected to generate the following yearly net cash flows: year 1 = -$20,000; year 2- $30,000; year 3: $35,000; year 4: $40,000; year 5: $150,000. The cost of capital is 10%. What is its discounted payback period? 4.43 years 3.88 years 2.77 years 4.99 years 2 pts Question 18 HFI applies a 10 percent discount rate to the following investment opportunity: CO = $10; C1 - $30; C2 - $5. What is the profitability index of this investment opportunity? 0.4 3.2 2.1 24

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