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Refer to Exhibit 1 below. Please show work. What is the projects payback period? If the firms WACC is 10%, what is the projects NPV?
Refer to Exhibit 1 below. Please show work.
What is the projects payback period?
If the firms WACC is 10%, what is the projects NPV?
If the firms WACC is 10%, what is the projects Profitability Index?
What is the projects IRR?
Exhibit 1
A firm is considering a project with the following cash flows.
Year | 0 | 1 | 2 | 3 |
Cash Flows | -$900 | $400 | $425 | $500 |
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