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The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $450,000. The Sisyphean Company

The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $450,000. The Sisyphean Company expects cash inflows from this project as detailed below:

Year1 200,000 Year 2 225,000 Year 3 275,000 Year 4 200,000

The appropriate discount rate for this project is 16%.

What is the IRR and profitability index for this project ?

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