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Question 5 You are considering a project with the following cash flows: CFo 10,000 CF1 17,000 CF2 1,000 CF3 8250 Project A a) Calculate the
Question 5 You are considering a project with the following cash flows: CFo 10,000 CF1 17,000 CF2 1,000 CF3 8250 Project A a) Calculate the NPV of these cash flows for various discount rates. Specifically, calculate the NPV for discount rates from 0.01 to 0.30, in increments of 0.01. Report the graph with NPV on the y- axis and discount rate on the x-axis b) On the basis of your graph, what positive IRR solutions (approximately) do you get? Remember that IRR is the discount rate for which NPV is equal to zero. Choose whether you should accept this project on the basis of MIRR, assuming a discount rate of 8 percent. c)
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