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Year Cash Flow ($) 0 -7,000,000 1 2,500,000 2 2,500,000 3 2,500,000 4 2,500,000 5 2,500,000 The company's discount rate is 11%. Plot the NPV

Year

Cash Flow ($)

0

-7,000,000

1

2,500,000

2

2,500,000

3

2,500,000

4

2,500,000

5

2,500,000

The company's discount rate is 11%.

  1. Plot the NPV profile.
  2. What is the IRR?
  3. Should the project be accepted if the discount rate is 11%?
  4. Calculate the Payback Period.
  5. Compute the Average Accounting Return (AAR).

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