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The Great Business Company is evaluating a project with the following cash flows: Year Cash Flow 0 ($15,000,000) 1 $ 3,000,000 2 $ 4,500,000 3

The Great Business Company is evaluating a project with the following cash flows:

Year

Cash Flow

0

($15,000,000)

1

$ 3,000,000

2

$ 4,500,000

3

$ 6,000,000

4

$ 7,500,000

5

$ 9,000,000

Question 1. What is the payback period of the proposed project?

Question 2. What is the net present value of the proposed project if the discount rate is 7%?

Question 3. What is the profitability index of the proposed project if the discount rate is 7%?

Question 4. What is the IRR of the proposed project?

Question 5. What is the discounted payback period of the proposed project if the discount rate is 7%?

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