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RST Ltd. is analyzing a project with the following details: Initial investment: $100,000 Year 1 cash inflow: $25,000 Year 2 cash inflow: $30,000 Year 3
RST Ltd. is analyzing a project with the following details:
•Initial investment: $100,000
•Year 1 cash inflow: $25,000
•Year 2 cash inflow: $30,000
•Year 3 cash inflow: $35,000
•Year 4 cash inflow: $40,000
•Year 5 cash inflow: $45,000
Requirements:
•Calculate the net present value (NPV) using a discount rate of 10%.
•Determine the internal rate of return (IRR).
•Find the payback period.
•Compute the accounting rate of return (ARR).
•Evaluate the investment's viability based on NPV and IRR.
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