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You are considering an investment that costs $12,000 today and will generate cash flows over the next three years of $3,000, $7,000, and $6,000. Your

  1. You are considering an investment that costs $12,000 today and will generate cash flows over the next three years of $3,000, $7,000, and $6,000. Your firm has a required rate of return of 9%.
  • Calculate the NPV.
  • Calculate the IRR.
  • Calculate the Profitability Index.
  • Calculate the Payback Period.

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