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Question: A project has an initial cost of $60,000 expected net cash inflows of $24,000 per year for 3 years, and a cost of capital

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A project has an initial cost of $60,000 expected net cash inflows of $24,000 per year for 3 years, and a cost of capital of 7%. Answer the following questions.

(a) Calculate the Normal Payback Period.

(b) Calculate the Discounted Payback Period.

(d) Calculate the Profitability Index.

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