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You are given a project with the following projected cash flows: Year 0 = -900,000 Year 1 = 300,000 Year 2 = 300,000 Year 3
You are given a project with the following projected cash flows: Year 0 = -900,000 Year 1 = 300,000 Year 2 = 300,000 Year 3 = 300,000 Year 4 = 300,000 The CEO has determined that if the payback period or discounted payback period method is used for evaluation, any project must pay back within 3 years to be accepted. Would you accept or reject the project using the payback method of evaluation? O A. Not enough information provided to decide OB. Accept O C. Indifferent between accepting and rejecting OD. Reject How long does this project take to pay back using the discounted payback period method, assuming a 10% discount rate? Round your answer to the nearest tenth of a year (i.e. 5.5 years). years What is the NPV of this project at a 10% discount rate? Please round your answer to the nearest dollar
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