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Year Cash Flow ($) 0 -8,000,000 1 3,500,000 2 3,500,000 3 3,500,000 4 3,500,000 5 -1,000,000 The cost of capital is 12%. Plot the NPV
Year | Cash Flow ($) |
0 | -8,000,000 |
1 | 3,500,000 |
2 | 3,500,000 |
3 | 3,500,000 |
4 | 3,500,000 |
5 | -1,000,000 |
The cost of capital is 12%.
- Plot the NPV profile for this project.
- What is the IRR?
- Should the project be accepted if the required rate of return is 12%?
- Calculate the Payback Period.
- Compute the Average Accounting Return (AAR).
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