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6) An investment will require $X today and $5m in one year. It will provide income of $6m per year for 4 years starting in

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6) An investment will require $X today and $5m in one year. It will provide income of $6m per year for 4 years starting in three years. a) Find the following iff X=$10m and i=12% i) The Net Present Value. ii) The Profitability Index. iii) The Payback period. b) Without doing any additional calculation indicate if the investment is profitable at 12% if X=$10m. Give reasons. c) Management requires a minimum IRR of 12% in order to proceed. Find the maximum value of X that will meet this goal. [10 points)

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