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Suppose an investment has an initial cost of $450,000 and generates cost savings of $125,000 per year for 5 years. 1. What is the return

Suppose an investment has an initial cost of $450,000 and generates cost savings of $125,000 per year for 5 years.

1. What is the return on investment?

2. What is the internal rate of return?

3. What is the payback period? (round up to a whole year)

4. Give one disadvantage associated with each method.

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