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Year Cash Flow 0 -$3,000 1 $1,000 2 $1,000 3 $1,000 4 $1,500 5 $1,500 Cost of Capital: 9% Calculate the Net Present Value (NPV).

Year

Cash Flow

0

-$3,000

1

$1,000

2

$1,000

3

$1,000

4

$1,500

5

$1,500

Cost of Capital: 9%

  1. Calculate the Net Present Value (NPV).
  2. Calculate the Internal Rate of Return (IRR).
  3. Determine the Payback Period.
  4. Calculate the Discounted Payback Period.
  5. Decide if the project should be undertaken.

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