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Roma Inc. has a new project with a cost of $455,000 and annual cash flows of $139,000 for 4 years. The cost of capital for
Roma Inc. has a new project with a cost of $455,000 and annual cash flows of $139,000 for 4 years. The cost of capital for the project is 11%. Calculate (i) net present value, (ii) payback period, and (iii) profitability index. Make a decision in each case and at the end (assume a benchmark period of 2.44 years).
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