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Year Cash Flow ($) 0 -5,000 1 1,500 2 2,500 3 3,000 4 1,500 5 1,000 Requirements: Calculate the Net Present Value (NPV) if the
Year | Cash Flow ($) |
0 | -5,000 |
1 | 1,500 |
2 | 2,500 |
3 | 3,000 |
4 | 1,500 |
5 | 1,000 |
Requirements:
- Calculate the Net Present Value (NPV) if the discount rate is 10%.
- Determine the Internal Rate of Return (IRR) for the project.
- Compute the Payback Period.
- Assess if the project is acceptable based on the NPV and IRR criteria.
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