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QUESTION 3. Evaluate the following investment project according to the Discounted Payback Period (DPP) and NPV, and advise the management whether it should be accepted

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QUESTION 3. Evaluate the following investment project according to the Discounted Payback Period (DPP) and NPV, and advise the management whether it should be accepted or rejected. The weighted average cost of capital (WACC) of the firm is 21%. YEAR CASH OUTFLOWS 100.000 100.000 0 1 YEAR 1 2 3 4 5 Salvage Value CASH INFLOWS 70.000 80.000 100.000 150.000 200.000 50.000

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