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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?
Group of answer choices
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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