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Your uncle is considering investing in a project with the following future cash flows: Year 1: $57,000 Year 2: $72,000 Year 3: $78,000 If the

Your uncle is considering investing in a project with the following future cash flows: Year 1: $57,000 Year 2: $72,000 Year 3: $78,000 If the initial outlay for the project is $185,000, and investor's required rate of return is 5%. Should your uncle invest the project, and why?

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No, because the project's NPV is negative.

Yes, because the project's IRR is higher than 5%.

No, because the project's IRR is lower than 5%

Yes, because the project's profitability index is lower than 1.

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