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Question 4: The Johnson Construction Co. is evaluating a project. It requires a payback of 3.5 years. (12 points) Year Project X $-65,000 $25,000 $25,000

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Question 4: The Johnson Construction Co. is evaluating a project. It requires a payback of 3.5 years. (12 points) Year Project X $-65,000 $25,000 $25,000 $20,000 $15,000 Oamt a. Calculate the NPV using a WACC (interest rate) of 10%. Based on the NPV rule, should the project be accepted? b. Calculate the PI. c. Calculate the IRR. (If you are not using a financial calculator, please try three rates to answer.) d. Calculate the Payback Period. Based on the Payback rule (above), should the project be accepted

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