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Show full working to earn full marks Question 2: A project has an initial cost of $61,000 expected net cash inflows of $24,000 per year
Show full working to earn full marks
Question 2: A project has an initial cost of $61,000 expected net cash inflows of
$24,000 per year for 3 years, and a cost of capital of 7%. Answer the following questions.
- Calculate the Normal Payback Period:
- Calculate the Discounted Payback Period: (15 points)
- Calculate the NPV:
Calculate the Profitability Index:
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