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The Buccaneer Company has an opportunity to make an investment with the following estimated after tax cash flows: Year Cash Flows QUAN -8,000,000 3,000,000 2,000,000

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The Buccaneer Company has an opportunity to make an investment with the following estimated after tax cash flows: Year Cash Flows QUAN -8,000,000 3,000,000 2,000,000 500,000 500,000 500,000 5,000,000 A. The company's required rate of return on such investments is 10%. Calculate the payback period, internal rate of return (IRR), net present value (NPV), and profitability index on this investment? (SHOW ALL YOUR WORK.) period Payback IRR = NPU- PI = What is the IRR, and what is its relationship to net present value profitability index

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