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So , your new moderately risky 5 - year project is costing $ 5 0 , 0 0 0 and will produce an annual free

So, your new moderately risky 5-year project is costing $50,000 and will produce an annual free cash flows of $14,000 per year for the entire period, Assuming the riskiness revealed that the cost associated with financing and rewarding risk amounts to a charge of 12%
a.. The discounted payback period will be: __________
b.. The NPV is :____________________________
c.. The PI is : _____________________________
d.. The Yield (IRR) on the investment is : ________
e.. Would you accept the project? Give the rationale for your answer as done in class.
f. Would your answer change if the cost of capital rose to 13%? Explain fully.
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