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You are considering an investment in a startup that will cost $100,000 but you will receive a cash inflow of $25,000 every year for 5
You are considering an investment in a startup that will cost $100,000 but you will receive a cash inflow of $25,000 every year for 5 years from the sale of products the startup will manufacture. The required return is 9%, and payback cutoff is 5 years. a) What is the payback period? b) What is the discounted payback period? (assume 5% discount rate) c) What is the NPV? d) What is the IRR? e)Should we accept the project?
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