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Tesla evaluates a project with an initial investment of $6,000,000, annual cash inflows of $1,500,000 for 8 years, and a discount rate of 12%. Requirements:

  1. Tesla evaluates a project with an initial investment of $6,000,000, annual cash inflows of $1,500,000 for 8 years, and a discount rate of 12%.
    • Requirements:
      • Calculate the net present value (NPV) of the project.
      • Determine the internal rate of return (IRR).
      • Conduct a sensitivity analysis on cash inflows and the discount rate.
      • Prepare a comprehensive capital budgeting report with recommendations.

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