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You are considering a project that will cost $2M today and will pay $500K each year for the next seven years (starting in exactly one
You are considering a project that will cost $2M today and will pay $500K each year for the next seven years (starting in exactly one year). You have been informed that the projects opportunity cost of capital is 12% and that the companys payback rule is 5 years. M10 What is the NPV for the project? (round to the nearest dollar) (3 pts) M11 Based on the NPV rule, should we pursue this project? (1 point) M12 Based on your NPV Rule, IRR Rule, and Payback Rule analysis, should we pursue the project? (1 point)
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