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Question 9: You are considering a project with an initial cash outlay and expected free cash flows at the end of each year for 5

Question 9:
You are considering a project with an initial cash outlay and expected free cash flows at the end of each year for 5 years, and the required rate of return for this project as stated below:
Length of Project 5 years
Expected Free Cash Flows at the end of each year 26 000
Initial Cash Outlay 115 000
Required Rate of Retrun 10,00%
a) What is the projects payback period? Would you accept/reject the project if the maximum acceptable payback period is 5 years?
b. What is the projects discounted payback period? Would you accept/reject the project if the maximum acceptable discounted payback period is 4 years?
c. What is the projects NPV? Would you accept/reject the project?
d. What is the projects PI? Would you accept/reject the project?
f. What is the projects IRR? Would you accept/reject the project?
f. What is the projects MIRR if the re-investment rate is 9 percent? Would you accept/reject the project?

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