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URGENTTTTTTT!!!!!!!!!!!!!!! PLEASEEEEEEEEEE ANSWERRRRRRRR ASAPPPPPPPP!!!! THANK YOUUUUUUUUUU Question 10 (20 marks) Apple Company is considering Project Z. The relevant information is given below: Year 0 Cash
URGENTTTTTTT!!!!!!!!!!!!!!! PLEASEEEEEEEEEE ANSWERRRRRRRR ASAPPPPPPPP!!!! THANK YOUUUUUUUUUU
Question 10 (20 marks) Apple Company is considering Project Z. The relevant information is given below: Year 0 Cash Flow Year 1 Cash Flow Year 2 Cash Flow Year 3 Cash Flow Year 4 Cash Flow Year 5 Cash Flow Project Life Project Z -120,000 60,000 48,000 38,000 24,000 12,000 5 years Apple Company uses a 12.5% discount rate. The cut off period set by the company for such projects is 4 years. a. Calculate the payback period. Should this project be accepted? [6 marks] b. Calculate the net present value. Should this project be accepted? [6 marks] C. Calculate the profitability index. Should this project be accepted? [6 marks] d. Should the project be accepted finally? [2 marks]Step by Step Solution
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